Buy ITC; target of Rs 405: KRChoksey

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26 Aug, 2025 12:21

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KRChoksey's research report on ITCFMCG major ITC reported Net Sales was in-line with our expectation and it stood at INR 89042.3 Mn and was just down by 1% y-o-y and up by 4% q-o-q due to growth in core segments like cigarettes, others like FMCG & hotels. EBITDA was at INR 35600.9 Mn and was up by 2% y-o-y and 5% Q-o-Q with margin of 40% and increase of 132bps y-o-y and 56bps q-o-q. PAT stood at INR 24312.5 Mn which was almost flat y-o-y and up by 7% q-o-q majorly because Decrease in interest cost.FMCG major ITC has seen slight growth improvement of Revenue and margin in core business & FMCG but still the focus will remain to sustain in the challenging environment. Its focus is to develop other than core segment and also its dairy business and to maintain its leadership position with superior product mix and brand image. We expect ITC Ltd to post its revenue growth of 15.3% and 16.3% in FY16E & FY17E and growth will be driven mainly by its core business and FMCG-Others. At the CMP of INR 336, ITC is available at a PE of 25.9x FY16E & 22.0x FY17E. We recommend ‘BUY’ rating on the stock, with a target price of INR 405 a potential upside of 20.4%.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.

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