Prabhudas Lilladher's research report on ITC
ITC reported a smart recovery in the cigarette business led by fast recovery across states and segments even as FMCG business suffered due to high base and higher input costs. ITC is focusing on innovations and distribution expansion across FMCG and cigarettes which should bode well in coming years. near term outlook seems mixed with improved outlook in cigarettes, strong growth and margin outlook in paper board, rising occupancy and EBIDTA positive in Hotels and steady leaf tobacco prices and benefits of currency depreciation.
ITC InfoTech has reported 23% growth in sales and 67% PAT for 1HFY22 and the outlook seems positive with 4x deal wins in last 2 years. ITC trades at 17x Sept23 EPS, with ~5% dividend yield and 12.2% EPS CAGR over FY21-23. Maintain BUY with SOTP based target price of Rs270.
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