Bullish on ITC, expect strong returns: Ajay Bodke, Prabhudas Lilladher

In a chat with ET Now, Ajay Bodke, Prabhudas Lilladher, shares his views on ITC. Excerpt:

ET Now: What is your call on ITC, is it still a very expensive stock?

Ajay Bodke: Yes, but as a defensive part of the portfolio. We would still bet on ITC in the large caps and Britannia in midcap.

We have target price of around 381. Our analysts suggest the company would post an earnings growth of around 16% for the current financial year followed by around a 21% in next financial year.

The company has very strong return ratios and I would advocate having some allocation in ITC and Britannia on the FMCG side.