Buy ITC; target of Rs 345: ICICI Direct

ICICI Direct's research report on ITC

ITC reported revenue growth of 6.1% YoY to Rs 14882.8 crore, largely in line with our estimate of Rs 14574.1 crore. Cigarette grew 4.8% YoY, FMCG, agri & hotel segments grew 6.5% YoY each. Paperboards, paper and packaging segment grew 4.4% YoY.

Outlook

Additionally, ITC’s focus on growing its FMCG business by entering newer segments and tapping opportunity in foods segment would be a catalyst for topline growth in the long run. We maintain our BUY recommendation on the stock with a revised target price of Rs 345.