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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.


Outlook


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


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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.

First Published on Aug 6, 2019 04:31 pm
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