JM Finnacial starts coverage on ITC
JM Financial gives coverage on ITC with a 'buy' rating.
CMP: Rs 176.40
Target Price: Rs 238
JM Financial has initiated coverage on ITC with a ���buy��� rating, as it feels that the company���s strategy of creating multiple growth drivers to reduce excess dependence on cigarettes for long-term sustenance would strengthen its growth prospects.
"Contrary to popular belief, overall growth is higher than the mainstay cigarettes business��� EBIT growth of 14% pa signifying success of ITC���s strategy in creating multiple drivers of growth," says the report.
The brokerage expects such pattern to continue stronger, going forward, especially with non-cigarettes FMCG portfolio projected to break-even in FY11E.
Disclaimer: The above stocks are picked up at random from research reports of brokerage houses. Investors are advised to use their own judgement before acting on these recommendations. ET does not associate itself with the choices.
Target Price: Rs 238
JM Financial has initiated coverage on ITC with a ���buy��� rating, as it feels that the company���s strategy of creating multiple growth drivers to reduce excess dependence on cigarettes for long-term sustenance would strengthen its growth prospects.
"Contrary to popular belief, overall growth is higher than the mainstay cigarettes business��� EBIT growth of 14% pa signifying success of ITC���s strategy in creating multiple drivers of growth," says the report.
The brokerage expects such pattern to continue stronger, going forward, especially with non-cigarettes FMCG portfolio projected to break-even in FY11E.
Disclaimer: The above stocks are picked up at random from research reports of brokerage houses. Investors are advised to use their own judgement before acting on these recommendations. ET does not associate itself with the choices.
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