Accumulate ITC; target of Rs 219: Angel Broking

67578 Investors following ITC. Share this News with them.

0

Like this story, share it with millions of investors on M3

Accumulate ITC; target of Rs 219: Angel Broking

Angel Broking is bullish on ITC and has recommended accumulate rating on the stock with a target of Rs 219 in its February 2, 2012 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Buy Jagran Prakashan; target of Rs 137: Angel Broking Buy Andhra Bank; target of Rs 136: KRChoksey Buy Dabur India; target of Rs 122: R K Global ALSO READ See previous views by Angel Broking See what other Experts & Brokerages are saying about ITC See messages about ITC ITC BSE | NSE 30/05/12 Are Mutual Funds betting on ITC?

Angel Broking is bullish on ITC and has recommended accumulate rating on the stock with a target of Rs 219 in its February 2, 2012 research report.

"For 3QFY2012, ITC declared steady growth in its top line and earnings (broadly in-line with our estimates). We recommend Accumulate on the stock."

"During the quarter, ITC declared top-line growth of 14.2% yoy to Rs6,195cr (Rs5,424cr), marginally below our estimates. The cigarette division registered 11.0% yoy growth in gross revenue (16.6% yoy growth in net revenue) on the back of higher value growth in cigarettes. Amongst other segments, at net level, agri-business, paperboards and packaging posted growth of 6.8% yoy, 11.5% yoy respectively, while hotels posted a decline of 1.0% yoy. Non-cigarette FMCG business grew by robust ~25% yoy. Earnings for the quarter grew by robust 22.5% yoy to Rs1,701cr (Rs1,389cr), in line with our estimates. The company has been successful in reducing its losses in the non-cigarette FMCG business - loss during 3QFY2012 stood at ~Rs47cr (Rs74cr)."

"Post 3QFY2012, we maintain our revenue and earnings estimates. We expect ITC to report a top line of Rs24,706cr in FY2012E and Rs29,294cr in FY2013E, registering a CAGR of ~17% over FY2011-13E. Growth would be driven by the company's diversified business model and ability to invest in growing businesses. In terms of earnings, we expect the company to report a 17.4% CAGR over the same period, backed by good performance by all businesses. At the CMP of Rs199, the stock is trading at 22.5x FY2013E EPS. We recommend Accumulate on the stock with a target price of Rs219, based on our SOTP valuation," says Angel Broking research report.   

Bodies Corporate holding more than 50% in Indian cos

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.

To read the full report click on the attachment