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ITC a market performer: Prabhudas Lilladher
Prabhudas Lilladher has revised its rating on ITC from outperformer to market performer. ITC reported net sales growth of 16.7% in Q4FY08 to Rs 39.3 billion, against research firm's expectation of Rs 39.2 billion.
Prabhudas Lilladher has revised its rating on ITC from outperformer to market performer in its May 28, 2008 research report. "ITC reported net sales growth of 16.7% in Q4FY08 to Rs 39.3 billion, against our expectation of Rs 39.2 billion. This was led by 48.1% growth in non-cigarette FMCG business and a healthy performance by the agri and paperboards segments. Net profit grew by 13.1% to Rs 7.4 billion, lower than our expectations of Rs 7.6 billion. OPM declined by 100bps to 26.6%."
"We remain positive on the 'multiple growth drivers' business model of the company. However, at current valuations, the stock is trading at a fair price. Due to uncertainty regarding conversion from nonfilters to filters, we revise our FY09E EPS to Rs 9.4 and FY10E EPS to Rs 10.5, thereby revising our rating from Outperformer to Market Performer with an SOTP price target of Rs 214," says Lilladher's research report.
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