ICICI Direct is bullish on ITC has recommended buy rating on the stock with a target price of Rs 340 in its research report dated May 14, 2019.
ICICI Direct's research report on ITC
Net revenue (net of excise duty) increased by 13.3% YoY to Rs 11,992.1 crore. Cigarette, FMCG, Agri, Paperboard & Hotels business witnessed a growth of 11.1%, 7.3%, 16.2%, 18.2% & 24.9% respectively. EBITDA grew by 10.3% to Rs 4,571.7 crore supported by Cigarette, FMCG, Agri & Paperboard segments. FMCG EBIT increased from Rs 91.2 crore to Rs 201 crore (including Rs 70.5 crore of loss making Lifestyle business sale) driven by strong growth in the branded packaged foods business, better product mix and cost rationalisation initiatives. The company declared dividend of Rs 5.75/share.
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 target price of Rs 340/share.
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