SBI Caps maintains hold on ITC, target price Rs 265

SBI Caps has maintained its ‘Hold’ rating on ITC with a target price of Rs 265. The brokerage said ITC has been successfully diversifying revenue. However, with high concentration of profits from cigarettes, combined with limited pricing power and sustained regulatory overhang, any valuation upsides will likely be capped. Further, the company has announced a large capex outlay as it looks to strengthen the food processing business infrastructure. Shares of ITC closed at Rs 243, up 1.6%.