Geojit has given Buy recommendation for ITC with a target price of Rs. 256 in its research report issued on Jun 08, 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. Q4FY21 standalone revenue grew 24.1% YoY, with improvements seen across all the segments. EBITDA rose 7.4% YoY to Rs. 4,473cr in Q4FY21, despite contraction in margins (-490bps YoY to 31.9%). PAT was marginally down by 1.3% to Rs. 3,748cr, impacted by higher tax outgo (+54.7% YoY). Management declared a final dividend of Rs. 5.75/share, taking total dividend for FY21 to Rs. 10.75/share. ITC’s business segments have been performing well on the back of demand growth, aiding topline performance.
With margins expected to improve moving forward, we maintain our BUY rating on the stock with a revised target price of Rs. 256 based on SOTP valuation.