February 02, 2017 / 15:39 IST
ICICI Direct's research report on ITC The government announced a 6% hike in excise duty across categories of cigarette against our assumption of 10% hike for FY18. We believe this would translate into nominal price hike requirement of 3.0% by the company in order to pass on the additional burden from the hike.
OutlookWe expect the cigarette business to grow at 7.8% CAGR in FY16-19E. Additionally, focus on growing the FMCG business (estimated to grow at 10.8% CAGR in FY16- 19E) 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 target price of Rs 300 valuing it on SOTP basis.
For all recommendations, 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
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
