CLSA has retained a buy rating on ITC with a target price of Rs 265.
By ET Bureau | Updated:
Mumbai: Most brokerages have maintained a bullish view on ITC as its June quarter earnings beat analysts' estimates.
The diversified conglomerate has reported a near 29% rise in net profit to Rs 3,013 crore for the quarter while revenue from operations in the first quarter rose 36% to Rs 12,959 crore.
"With expected normalcy, we see a recovery in its overall business and margin profile. With steady expansion in its margin and a reduction in capex, the K-shaped trend will continue," said CLSA, retaining a buy rating and a target price of Rs 265. IDBI Capital has retained buy rating on the company with a target price of Rs 275 and Kotak Institutional Equities has retained buy and revised its target price to Rs 275 from Rs 257.
"Lower lockdown impact and the faster recovery trends seen in cigarettes are positives and improve earnings growth visibility. In addition to the rising profitability of FMCG, improvement in IT is notable, and can offer incremental upsides," said Emkay, maintaining a buy rating with a target price of Rs 270. "At 15 times FY23 estimated EPS, the valuation remains attractive," said Emkay.
However, Motilal Oswal has maintained a neutral rating with a target price of Rs 225 as it believes ITC's valuation at 15 times FY23 earnings appears fair.
