Geojit has given Buy recommendation for ITC with a target price of Rs. 265 in its research report issued on Feb 17, 2021
Geojit’s research report on ITC
ITC limited is a diversified conglomerate with presence in FMCG, Hotels, Paperboards & Specialty Papers, Packaging, and Agri-business. The company directly employs over 36,500 people across businesses. Q3FY21 standalone revenue up 4.9% YoY (+5.0% QoQ) led by growth in FMCG and Agri businesses. EBITDA margins improved further sequentially to 34.3% (vs. 34.1% in Q2FY21). PAT grew 13.3% QoQ to Rs. 3,663cr. Company declared interim dividend of Rs.5/share during the quarter. We see decent uptick in growth across all of ITC’s segments over the coming quarters. Though GoI’s draft bill on sales of loose cigarettes may have some impact on its cigarette business in the near term, ITC’s diversified portfolio is expected to deliver strong growth over the longer term.
Hence, we reiterate our BUY rating on the stock with a rolled forward target price of Rs. 265 based on SOTP.