Motilal Oswal has given Buy on the stock with a revised price target (PT) of Rs. 245 recommendation for ITC with a target price of Rs. lal Oswal is bullish on ITC has recommended buy on the stock with a revised price target (PT) of Rs. 245 in its research report issued on Feb 03, 2022

Outlook

Revenue was higher than our expectations, led by outperformance in the Agri and Hotels businesses, but overall EBITDA and PAT was in line.  Among the internals, the positive surprise was the Cigarette volume growth of 13%. We were expecting some disruption towards the end of 3QFY22 on account of the COVID-led restrictions beginning from the last fortnight of Dec’21. It is true that this growth was on a 7% volume decline. Nevertheless, average Cigarette volume and EBIT growth over the last two-years remains between 2% and 3%. With input costs led pressures weighing on FMCG – Others’ margin YoY, EBIT diversification away from Cigarettes will take time. We maintain our Neutral view.

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