Moneycontrol
Jun 15, 2017 03:24 PM IST | Source: Moneycontrol.com

Buy ITC; target of Rs 336: Geojit Financial Services

Geojit Financial Services is bullish on ITC has recommended buy rating on the stock with a target price of Rs 336 in its research report dated June 12, 2017.

Buy ITC; target of Rs 336: Geojit Financial Services

Geojit Financial Services' research report on ITC


While ITC’s gross sales grew by mere 6% YoY in Q4FY17, net sales grew by healthy 14% YoY driven by 11% drop in excise duty outgo this quarter. Notably, the base quarter witnessed higher excise as inventory rose in the system ahead of pictorial warning implementation.


Outlook


Further, revenue/PAT is expected to witness a CAGR of 13.6%/15.4% over FY17-19E. The neutral GST rate for cigarette augurs well for volume growth of the category & hence, we upgrade our rating from ‘HOLD’ to ‘BUY’ with a revised TP of Rs 336 (earlier Rs 291) based on 30x FY19E P/E.


For all recommendations, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Sections
Follow us on
Available On