Buy ITC Ltd., target Rs 283.0 : CLSA

CLSA has Buy call on ITC Ltd. with a target price of Rs 283.0. The current market price of ITC Ltd. is 249.6. Time period given by analyst is year, when ITC Ltd. price can reach defined target. CLSA maintains a buy rating on ITC post June quarter results with a 12-month target price of Rs 283. The earnings cut were largely due to changes under Ind AS. ITC seems to be chasing volume growth which is a strategy in the right direction, said the CLSA note. The Cigarette volume was largely in-line with estimates but mixed performance of other businesses is a sign of worry. The global investment bank further added that they are cutting their earnings per share (EPS) by 1- 1.5% mainly to account for higher taxes.