We have a positive view on the company over medium to long term and have a buy rating with a target price of Rs 352 per share.
ITC is a well- diversified conglomerate having market leadership position in cigarette business in India. Apart from its cigarette business, ITC has a very strong positioning in other FMCG, Hotel, Paper & Agri businesses.
In FMCG Space, the Company has recently commissioned consumer good manufacturing facility at Trichy, Tamil Nadu in Sep'18. Steady progress is being made towards development of other such facilities which are expected to be commissioned in the near to medium term.
In Hotel Space, the company is making investments in new hotels at Kolkata, Ahmedabad, Bhubaneswar, Guntur and Amritsar are underway. Also, the construction activity of the company’s first overseas project in Colombo is progressing as per schedule.
In Paper Space, the company has commissioned a new value added paperboard line with a capacity of 1.5 lakh TPA in Aug’18 taking the overall capacity to 7.4 lakh TPA in order to utilize overall macroeconomic opportunities emerging in paper industry.
Today, ITC is the leading FMCG marketer in India, a preeminent hotel chain, the clear market leader in the Indian Paperboard and Packaging industry, a pioneering trailblazer in farmer & rural empowerment through its Agri Business and a global exemplar in sustainable business practices.
With strong operating cash flows, continuous capacity expansions across businesses and a healthy balance sheet, we have a positive view on the company over medium to long term. We have a buy rating with a target price of Rs 352 per shareDisclaimer: The views and investment tips expressed by investment experts 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.