ITC Ltd. share price target

The management of ITC held an analyst meeting, which featured a comprehensive overview of each of its businesses provided by respective business heads and the senior management team. While there was nothing new to change our view on the prospects of its business as highlighted in our detailed note on the company in Nov'21, this move on the part of the management is highly appreciated as it enabled a forum to discuss the progress and concerns in each segment. Cigarette demand and mix: Demand recovery in Cigarettes after the second COVID wave has been much faster v/s the first wave, with demand returning...

About the stock: ITC is the biggest cigarettes & second largest FMCG company in India with ~78% market share in cigarettes & presence in staples, biscuits, noodles, snacks, chocolate, dairy products & personal care products. The company is also present in paperboard, printing & packaging business...

We attended ITC Limited (ITC) analyst meet. Company aims to achieve double digit revenue and operating profit growth in near term. Cigarette business is witnessing improvement in revenue mix driven by new launches (new products contribute 11% to volume, while assortment increased 2x during last 8 years). Rich revenue mix should help in offsetting impact on cigarette volume growth due to tax driven price hikes taken earlier/if-any-in-future. On FMCG business; ITC expects to maintain EBITDA margin despite raw material cost inflation. In hotel business; company expects leisure segment to outperform in near term...

ITC's first Investor meet highlighted strategic growth drivers and its strategy Change in Estimates | Target | Reco around ESG principles. ITC is committed to sustain growth across key segments led by cross segment synergies, innovation, digital, GTM initiatives...

Tapering in-home consumption and sharp commodity cost inflation could affect strong EBIT growth in the Other FMCG segment, preventing the contribution of Cigarettes in overall EBIT to decline much (likely to reduce to ~80% in FY23E which is still within its ten-year range of 80-86%). Cigarette volumes for ITC and even other players globally have been on a declining trend, given the increased health consciousness among consumers over the last decade. With the government having recently (Oct'21) set up an expert panel tasked with preparing a comprehensive tax policy proposal for all forms of tobacco...

Q1FY22, Net profit up 10.26%, beats estimates For quarter ended Sept 2021, consolidated Net sales (including other operating income) of ITC has increased 13.91% to Rs 13757.15 crore compared to quarter ended sept 2020. Sales of FMCG-Cigarettes segment has gone up 10.52% to Rs 6,219.84 crore (accounting for 38.96% of total sales). Sales of FMCG-Others segment has gone up 2.88% to Rs 4,043.83...

Volumes have already reached pre-pandemic levels and are expected to grow further. Decline in daily COVID cases, accelerated vaccine drive and increase in mobility will provide much needed impetus to economic recovery. With promising outlook, we reiterate our BUY rating on the...

This leads to an upward revision in TP to Rs. 280 (Rs. 270 earlier) as we continue to value it at 18x PE multiple on FY24E EPS. Maintain BUY.

EBIDTA positive in Hotels and steady leaf tobacco prices and benefits of currency depreciation. ITC InfoTech has reported 23% growth in sales and 67% PAT for 1HFY22 and the outlook seems positive with 4x deal wins in last 2 years. ITC trades at 17x Sept23 EPS, with ~5% dividend yield and 12.2% EPS...

Demand picks-up across segments; cigarette exit volume reach pre-covid levels Revenue (ex-agri business) grew 12%YoY driven by resilient performance of FMCG (+23% vs 2QFY20) due to sharp re-bound in out-of-home consumption. Cigarette business grew 10%YoY driven by strong recovery across all regions with exit volumes at pre-covid levels. Occupancy in hotel business improved by 3x YoY as business travel gathers momentum while leisure destination continues the growth momentum. Paperboard and packaging segment revenue grew 25% aided by revival...