Buy ITC, target price Rs 265: Emkay Global

Emkay Global has buy call on ITC with a target price of Rs 265. The current market price of ITC is Rs 211.4. Time period given by analyst is year when ITC price can reach defined target.

ITC Ltd., incorporated in the year 1910, is a Large Cap company (having a market cap of Rs 264947.87 Crore) operating in Tobacco sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 14921.76 Crore, up 1.71 % from last quarter Total Income of Rs 14670.17 Crore and up 19.85 % from last year same quarter Total Income of Rs 12449.92 Crore. Company reported net profit after tax of Rs 3816.84 Crore in latest quarter.

Investment Rationale
The brokerage cuts FY22E/23E EPS by 8%/3%. It expects earnings to improve with full unlocking and estimate 12%/17%/10% earnings growth in FY22/23/24. Valuations at 15x can offer upsides with improvement in growth. It retains Buy with a TP of Rs265 (18x Jun'23 EPS).


Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of Sept 30, 2020, while FIIs held 13.1 per cent, DIIs 43.5 per cent and public and others 43.5 per cent.

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