Neutral on ITC, target price Rs 185: Motilal Oswal
ITC Ltd., incorporated in the year 1910, is a Large Cap company (having a market cap of Rs 209889.85 Crore) operating in Tobacco sector.
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Promoters held 0 per cent stake in the company as of June 30, 2020, while FIIs held 14.7 per cent, DIIs 42 per cent and public and others 43.3 per cent.
Motilal Oswal has given neutral rating to ITC with a target price of Rs 185. The share price moved up by 1.99 per cent from its previous close of Rs 170.80. The stock’s last traded price is Rs 174.20.
ITC Ltd., incorporated in the year 1910, is a Large Cap company (having a market cap of Rs 209889.85 Crore) operating in Tobacco sector.
Financials For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 9722.04 Crore, down 16.75 % from last quarter Sales of Rs 11677.97 Crore and down -22.42 % from last year same quarter Sales of Rs 12532.31 Crore. Company reported net profit after tax of Rs 2567.07 Crore in latest quarter.
Investment Rationale The stock is trading at 13.5x FY22E EPS on the current forecasts. This may be affected by the negative impact of Maharashtra’s loose cigarette ban (if implemented stringently) or any potential steep GST increase. The brokerage values ITC at 14x Sep’22E EPS (a ~20% premium to global peers’ average multiple) to arrive at TP of Rs 185.
Promoter/FII Holdings Promoters held 0 per cent stake in the company as of June 30, 2020, while FIIs held 14.7 per cent, DIIs 42 per cent and public and others 43.3 per cent.
ITC share price adjusts by Rs 26 on NSE as stock trades ex-demerger of hotels biz
