Add ITC, target price Rs 395: HDFC Securities

HDFC Securities has add call on ITC with a target price of Rs 395. The current market price of ITC is Rs 400.85.

ITC, incorporated in the year 1910, is a Large Cap company (having a market cap of Rs 498363.51 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 31-12-2022, the company has reported a Consolidated Total Income of Rs 18299.95 Crore, down -4.00 % from last quarter Total Income of Rs 19062.68 Crore and down -2.60 % from last year same quarter Total Income of Rs 18787.72 Crore. Company has reported net profit after tax of Rs 5070.09 Crore in latest quarter.

The company’s top management includes Mr.Sanjiv Puri, Mr.Shyamal Mukherjee, Mr.Mukesh Gupta, Mr.Navneet Doda, Mr.Sunil Panray, Mr.Hemant Bhargava, Ms.Nirupama Rao, Ms.Meera Shankar, Mr.Arun Duggal, Mr.Shilabhadra Banerjee, Mr.David Robert Simpson, Mr.Ajit Kumar Seth, Mr.Anand Nayak, Mr.Sumant Bhargavan, Mr.Nakul Anand, Mr.Supratim Dutta. Company has S R B C & Co. LLP as its auditors. As on 31-03-2023, the company has a total of 1,243 Crore shares outstanding.

Investment Rationale
The brokerage models 16.8% YoY growth in cigarette revenue, with volume growth of 16% YoY (5% 4-year CAGR). The non Cigarette business is expected to grow 5% YoY (impacted by agribusiness).

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 31-Mar-2023, while FIIs owned 43.35 per cent, DIIs 31.15 per cent.