Buy ITC with a target at Rs 352: Anand Rathi

ITC has reported a growth of 13.3 percent in its standalone revenue at Rs 11, 992 crore (net of excise duty) in Q4-FY19 as against Rs 10, 587 crore in Q4-FY18.

On segment basis, FMCG cigarette revenue came in at Rs 5, 486 crore registering a growth of 11.1 percent, FMCG Others revenue came in at Rs 3, 274 crore registering a growth of 7.3 percent, Hotel business revenue came in at Rs 510 crore registering a growth of 24.9 percent, Agri Business revenue came in atRs.2, 101 crore registering a growth of 16.2 percent whereas paper business revenue came in at Rs 1, 537 crore registering a growth of 18.2 percent.

On profitability front, the company has reported a growth of 19 percent in its net profit which came in at Rs 3, 481 crore in Q4-FY19 vs Rs 2, 933 crore in Q4-FY18. EBITDA margin came in at 38.1 percent.

With strong operating cash flows, continuous capacity expansions across businesses and a healthy balance sheet, we have a positive view on the company over medium to long term. We have a buy rating with a target price of Rs 352 per share.