Accumulate ITC, target price Rs 478: Prabhudas Lilladher

Prabhudas Lilladher has accumulate call on ITC with a target price of Rs 478. The current market price of ITC is Rs 464.

ITC, incorporated in the year 1910, is a Large Cap company (having a market cap of Rs 578497.44 Crore) operating in Tobacco sector.

ITC key Products/Revenue Segments include Packaged Food Item, Agricultural Products, Paper & Paper Boards, Others, Tobacco Unmanufactured, Service (Hotel), Printed Materials, Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 18244.54 Crore, down -.30 % from last quarter Total Income of Rs 18299.95 Crore and up 6.98 % from last year same quarter Total Income of Rs 17054.15 Crore. Company has reported net profit after tax of Rs 5225.02 Crore in latest quarter.

Investment Rationale
The brokerage believes strong growth momentum in cigarette business and steady margin expansion in FMCG are positives. ITC trades at 25.3x FY25 EPS with ROE/ROCE of 30%+/35%+ and ~80%+ dividend payout. The brokerage increases its SOTP based target price to Rs478 (Rs455 earlier, cigarette multiples increased to 22x).