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Last Updated : Aug 06, 2019 04:31 PM IST | Source: Moneycontrol.com

Buy ITC; target of Rs 320: Dolat Capital

Dolat Capital is bullish on ITC has recommended buy rating on the stock with a target price of Rs 320 in its research report dated August 02, 2019.

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Dolat Capital's research report on ITC

ITC’s Q1FY20 results were broadly in line with our estimates. The cigarette business posted +3% YoY volume growth, below our estimate of 5%. However, increase in margins in the cigarette business was encouraging. Despite sluggish demand in Q1, ITC’s FMCG business reported a 6.6% increase in topline and 80bps expansion in margin. We have maintained our FY20E and FY21E EPS estimates at ` 11.4 and ` 12.2, respectively. In our view, the stock is trading at a steep discount to peers and is an attractive stock.


We value the stock at 26x PE, with a TP of ` 320. Maintain Buy. In volatile market conditions, we believe that there may be some pressure on ITC. Nevertheless, in the long run we maintain a positive view.

For all recommendations report, click here

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First Published on Aug 6, 2019 04:31 pm