Buy ITC; target of Rs 350: KR Choksey

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

KR Choksey's research report on ITC

ITC posted its Q1FY19 results which were in line with our estimates, revenue stood at INR 107 Bn (+7.6% YoY). The top line was mainly driven by Food-FMCG, Hotels and Agri segment, which grew by 10.3%, 12% & 14% YoY respectively, this was mainly due to revival in consumer demand and increase in room occupancy rate. EBIDTA stood at INR 42 Bn (+12% YoY), with OPM at 39.2% (+161 bps YoY). Lower operating overheads (-3% YoY) has resulted in better margins. PAT for Q1FY19 stood at INR 28.2 Bn (+10.1% YoY), with NPM at 26.3% (+60 bps YoY). Lower interest expenses (-29.3% YoY) resulted in higher PAT.

Outlook

At the CMP of INR 300, ITC is trading at an P/E of 29.7x for FY20E, we assign a P/E multiple of 34.5x to arrive at a target price of INR 350 recommending a ‘BUY’ rating on the stock representing a potential upside of 16.7%.

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.

Read More