ICICI Direct is bullish on ITC has recommended buy rating on the stock with a target price of Rs 315 in its research report dated August 05, 2019.
ICICI Direct's research report on ITC
Net revenue (net of excise duty) increased 5.8% YoY to Rs 11,502.8 crore. Cigarette, FMCG, agri business, paperboard & hotels business witnessed growth of 6%, 6.6%, 14.6%, 12.7% & 15%, respectively. EBITDA grew 8.7% to Rs 4,565.7 crore supported by cigarette, FMCG, agri & paperboard segments. FMCG EBITDA increased from Rs 127.8 crore to Rs 180.7 crore driven by strong growth in the branded packaged foods business, better product mix and cost rationalisation initiatives. Net profit grew 12.6% YoY to Rs 3,173.9 crore driven by higher operating profit and other income.
We expect revenues and PAT to grow at a CAGR of 9.9% and 10.8%, respectively, in FY19-21E. We continue to maintain our BUY rating on the stock with a revised target price of Rs 315/share.
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