June 25, 2024


Full Of Eastern Travel

ITC share price: Overweight on ITC, target price Rs 305: Morgan Stanley

Morgan Stanley has obese connect with on ITC with a concentrate on price of Rs 305. The present industry cost of . is Rs 266.2.
Ltd., integrated in the calendar year 1910, is a Large Cap corporation (having a sector cap of Rs 327860.22 Crore) running in Tobacco sector.

ITC Ltd. crucial Products and solutions/Income Segments incorporate Packaged Foodstuff Merchandise, Agricultural Merchandise, Paper & Paper Boards, Other people, Tobacco Unmanufactured, Service (Hotel), Printed Supplies, Other Running Earnings for the 12 months ending 31-Mar-2021.


For the quarter finished 31-03-2022, the business reported a Consolidated Complete Revenue of Rs 18252.64 Crore, down -2.85 % from very last quarter Overall Profits of Rs 18787.72 Crore and up 22.32 % from final 12 months exact quarter Total Revenue of Rs 14921.76 Crore. Enterprise described web financial gain soon after tax of Rs 4259.68 Crore in latest quarter.

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Expenditure Rationale
The brokerage updates ITC to OW with a Mar-23 PT of Rs305. ITC gives a very good blend of earnings visibility for FY23 (no cigarette tax improve, somewhat insulated from commodity inflation problem), powerful money flows and large dividend produce (~5%). It believes the stock must do nicely in present risky marketplaces as a good defensive enjoy with undemanding valuations (16x FY24E P/E). It expects FY23 to be a solid 12 months for cigarette EBIT (JPMe: +15%) aided by healthy quantity restoration (current market share obtain led, stable pricing aids superior mix) and no product price tag tension. Other FMCG division ought to be able to navigate inflationary headwinds by means of prudent pricing, small desire elasticity (better foodstuff salience) and sharp value manage. It raises FY23/24E EPS by 3-5% mostly driven by better growth assumptions for the cigarette division. Any adverse regulatory adjust stays the key draw back hazard.

Promoter/FII Holdings
Promoters held per cent stake in the business as of 31-Mar-2022, although FIIs owned 14.51 for each cent, DIIs 40.26 for each cent.

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