Buy ITC; target of Rs 256: Geojit

Geojit's research report on ITC

ITC limited is a diversified conglomerate with presence in FMCG, Hotels, Paperboards & Specialty Papers, Packaging, and Agri-business. The company directly employs over 36,500 people across businesses. Q4FY21 standalone revenue grew 24.1% YoY, with improvements seen across all the segments. EBITDA rose 7.4% YoY to Rs. 4,473cr in Q4FY21, despite contraction in margins (-490bps YoY to 31.9%). PAT was marginally down by 1.3% to Rs. 3,748cr, impacted by higher tax outgo (+54.7% YoY). Management declared a final dividend of Rs. 5.75/share, taking total dividend for FY21 to Rs. 10.75/share. ITC’s business segments have been performing well on the back of demand growth, aiding topline performance.

Outlook