Buy ITC, target price Rs 291: Geojit

Geojit has buy call on ITC with a target price of Rs 291. The current market price of ITC is Rs 228.95.
Time period given by analyst is one year when ITC Ltd. price can reach defined target.

ITC Ltd., incorporated in the year 1910, is a Large Cap company (having a market cap of Rs 281079.38 Crore) operating in Tobacco sector.


ITC Ltd. key Products/Revenue Segments include Packaged Food Item, Agricultural Products, Paper & Paper Boards, Others, Service (Hotel), Tobacco Unmanufactured, Printed Materials, Other Operating Revenue for the year ending 31-Mar-2020.


Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 18787.72 Crore, up 22.69 % from last quarter Total Income of Rs 15313.15 Crore and up 28.07 % from last year same quarter Total Income of Rs 14670.17 Crore. Company reported net profit after tax of Rs 4118.80 Crore in latest quarter.

Investment Rationale
Progressive recovery in economic activities, pick up in external trade, strong consumer demand, company’s focus on innovation and judicious pricing action and wide distribution network will help generate lucrative gains in future. Hence, the brokerage reiterates BUY rating on the stock with a rolled forward TP of Rs. 291 based on SOTP valuation

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 31-Dec-2021, while FIIs owned 12.48 per cent, DIIs 41.29 per cent.