Buy ITC, target price Rs 450: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on ITC with a target price of Rs 450. The current market price of ITC is Rs 387.35.

ITC, incorporated in the year 1910, is a Large Cap company (having a market cap of Rs 480976.97 Crore) operating in Tobacco sector.

ITC key Products/Revenue Segments include Packaged Food Item, Agricultural Products, Paper & Paper Boards, Others, Tobacco Unmanufactured, Service (Hotel), Printed Materials, Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 18299.95 Crore, down -4.00 % from last quarter Total Income of Rs 19062.68 Crore and down -2.60 % from last year same quarter Total Income of Rs 18787.72 Crore. Company has reported net profit after tax of Rs 5070.09 Crore in latest quarter.

The company’s top management includes Mr.Sanjiv Puri, Mr.Shyamal Mukherjee, Mr.Mukesh Gupta, Mr.Navneet Doda, Mr.Sunil Panray, Mr.Hemant Bhargava, Ms.Nirupama Rao, Ms.Meera Shankar, Mr.Arun Duggal, Mr.Shilabhadra Banerjee, Mr.David Robert Simpson, Mr.Ajit Kumar Seth, Mr.Anand Nayak, Mr.Sumant Bhargavan, Mr.Nakul Anand, Mr.Supratim Dutta. Company has S R B C & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 1,241 Crore shares outstanding.

Investment Rationale
ITC’s earnings outlook is better than other large cap staples players both on a two-year CAGR endingFY23E as well as FY24 earnings growth expectations. At a time when uncertainty looms over the industry, led by high inflation, unpredictable monsoons, continued weak rural sales, and delay in commodity costs decline, ITC’s earnings performance in the last couple of years and in FY24shines like a beacon.