Buy ITC, target price Rs 270: Emkay Global

Emkay Global has buy call on ITC with a target price of Rs 270. The current market price of ITC is Rs 210.1. Time period given by analyst is one 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 258608.82 Crore) operating in Tobacco sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 14687.80 Crore, down -1.57 % from last quarter Total Income of Rs 14921.76 Crore and up 37.28 % from last year same quarter Total Income of Rs 10699.20 Crore. Company reported net profit after tax of Rs 3343.44 Crore in latest quarter.


Investment Rationale
Lower lockdown impact and the faster recovery trends seen in cigarettes are positives and improve earnings growth visibility. In addition to the rising profitability of FMCG, improvement in IT is notable, and can offer incremental upsides. At 15x FY23E EPS, the valuation remains attractive. The brokerage maintains Buy with a TP of Rs270.

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of June 30, 2021, while FIIs held 11.7 per cent, DIIs 42.4 per cent and public and others 45.9 per cent.