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ITC Share Price Target
ITC Ltd.
Sector: Tobacco
Sector: Tobacco
ITC Share Price *
241.15 -2.2 (-0.9%)
* (quote may be delayed)
ITC Share Price Forecast - Consensus
| No. of reports in last year | 28 |
| No. of analysts | 11 |
| Average Consensus Forecast | 328.32 |
| Consensus Potential | 25.13% |
ITC Share Price Target - Broker Reports - 2019
Geojit Financial Services
7-Nov-19
Price @ Call: 264.96
Target: 294
BUY
Axis Direct
29-Oct-19
Price @ Call: 250.5
Target: 297
BUY
We believe an improving growth trajectory in FMCG segment and calibrated price/volume strategies in its core cigarette business remain key catalysts to sustain a healthy growth momentum going ahead. Notwithstanding punitive taxation we believe ITC trades at inexpensive valuations (22x Sept21E which is at a discount to FMCG Index P/E) and undemanding expectations gives us comfort on earnings delivery over the long term. We maintain “BUY” with unchanged TP of Rs. 297 based on Sept21E. Key risk to our call is rise in competitive intensity, adverse government regulation/steep rise in cigarette taxation and SUUTI stake sale overhang.
ICICIdirect.com
25-Oct-19
Price @ Call: 251.36
Target: 320
BUY
ITC has a strong margin profile with EBITDA & PAT margin of 38.5% & 27.7%, respectively, as on FY19. While overall RoCE is at 30.8%, cash cow cigarettes business enjoys RoCE of 200%+ due to superior pricing power and low capital intensity. High cash generation has enabled ITC to invest aggressively in other fast growing businesses and thereby diversify into non-stringent segments. ITC is trading at a P/E of 18x on FY21E earnings, which is at a 60% discount to its FMCG peers. Though ITC is a diversified play with investment even in other businesses, given attractive valuations, there is room for significant upside for the company. We continue to maintain our BUY rating on the stock with a target price of Rs 320/share.
HDFC Securities
25-Oct-19
Price @ Call: 251.36
Target: 368
BUY
ITC clocked in-line performance, with no deceleration vs. 1Q (most consumer cos were impacted by slowdown and floods). Cig rev/vol/EBIT growth of 6/3/7.4% was steady. FMCG and Hotels outperformed with rev/EBITDA growth of 6.5/39% and 18/37%. ITC’s earnings growth (ex-corp tax benefits) of 10% has been steady over the last 8 quarters, still stock has been de-rated. We believe de-rating is unwarranted when the co is consistently showing quality earnings. We value ITC on SoTP basis (link to table) and arrive at a TP of Rs 368 (implied P/E of 25x). Maintain BUY.
Nirmal Bang
25-Oct-19
Price @ Call: 251.36
Target: 300
BUY
Cigarette business EBIT margin was higher by 100bps to 72.2%. FMCG-Other business continued to deliver improvement in margins despite stepped up marketing investments, gestation and start-up costs of new categories / new facilities. Paper & Paperboards business also showed improvement in margins largely led by better mix while Agri and Hotels business margins were down YoY. Agri business results were impacted by subdued demand for leaf tobacco in international markets, depreciation in currencies of competing origins and adverse business mix. Hotels segment results include the impact of additional depreciation pertaining to new properties. We had recently (post the change in corporate tax rate) upgraded the stock to Buy and we continue to maintain it with a TP of Rs300, indicating an upside of 21% from the CMP.
Prabhudas Lilladher
24-Oct-19
Price @ Call: 251.52
Target: 344
BUY
ITC has posted another steady quarter with 3% cigarette volume growth in a challenging environment. Overall business momentum is sustained with 6.5% comparable FMCG growth, strong margin outlook in paperboards and sustained margin expansion in FMCG business. Uptick in consumer demand holds key to volume recovery in FMCG even as ITC is gradually inching towards double digit EBIDTA margins over next 3-5 years. Paperboard business is in fine fettle given gains from steady prices and benign input costs. Hotels ARR and occupancy indicates steady improvement in industry dynamics. ITC will gain from deferred tax liability of Rs10.2bn from 2Q to 4Q20. ITC trades at 18.5xFY21 EPS, ~50% discount to our coverage universe with 3% dividend yield and 10.5% PBT CAGR over FY19-22. Risk reward remains favorable, although uncertainty on cigarette taxation remains a drag.Retain “Buy” with SOTP based target price of Rs344.
Sharekhan
24-Oct-19
Price @ Call: 251.52
Target: 297
BUY
Valuation: We have broadly maintained our earnings estimates for FY2020 and FY2021. Though revenue is expected to grow in single digits, the expansion in OPM, higher other income and reduction in the corporate tax would result in strong double digit earning growth in FY2020. ITC continues to trade at a discounted valuation of 18.1x its FY2021E earnings, lower than some large-cap FMCG companies. We maintain our Buy recommendation on the stock with an unchanged price target (PT) of Rs. 297.
Geojit Financial Services
30-Aug-19
Price @ Call: 244.44
Target: 252
HOLD
The company’s leadership position in the cigarettes market and additionally new innovative product launches (especially in FMCG - others and Agri business) should drive the value in FY20-21. However, given the impact of higher tax regime and illegal trade activities on cigarettes division and weak FMCG industry demand, we downgrade the stock to HOLD with a revised target price of Rs. 252 based on sum of the parts (SOTP) valuation methodology.
Sharekhan
8-Aug-19
Price @ Call: 255.66
Target: 325
BUY
We have reduced our earnings estimates by 3.6% and 5.1%, respectively, for FY2020E and FY2021E, to factor in slower growth in the core cigarette business. ITC continues to trade at a discounted valuation of 21.5x its FY2021E earnings, which is lower than some of the large- cap FMCG companies. The company continued its focus on de-risking its business model by making higher investment in businesses such as hotel and non-cigarette FMCG. We maintain our Buy recommendation on the stock with a revised price target of Rs. 325 (valuing the stock at 30x its FY2021E earnings).
Axis Direct
8-Aug-19
Price @ Call: 255.66
Target: 297
BUY
We believe an improving volume trajectory and calibrated price actions in its core cigarette business are key catalysts to sustain the growth momentum going ahead. Notwithstanding punitive taxation we believe ITC trades at inexpensive valuations of 20x Mar-21E EPS which is at a discount to FMCG Index P/E valuation) and undemanding expectations gives us comfort on earnings delivery over the long term. Adding to this, improving fundamentals and profitability in the FMCG business will only aid growth momentum. We have a “BUY” rating on ITC Ltd. with a revised TP of Rs. 297 (earlier Rs. 315) based on its FY21E EPS (24x P/E on FY21E earnings). The revision in TP is to factor in the slowdown concerns that could have a bearing on growth.
Dolat Capital
6-Aug-19
Price @ Call: 259.83
Target: 320
BUY
ITC’s Q1FY20 results were broadly in line with our estimates. The cigarette business posted +3% YoY volume growth, below our estimate of 5%. However, increase in margins in the cigarette business was encouraging. Despite sluggish demand in Q1, ITC’s FMCG business reported a 6.6% increase in topline and 80bps expansion in margin. We have maintained our FY20E and FY21E EPS estimates at ` 11.4 and ` 12.2, respectively. In our view, the stock is trading at a steep discount to peers and is an attractive stock. We value the stock at 26x PE, with a TP of ` 320. Maintain Buy. In volatile market conditions, we believe that there may be some pressure on ITC. Nevertheless, in the long run we maintain a positive view
Nirmal Bang
5-Aug-19
Price @ Call: 264.6
Target: 300
ACCUMULATE
On an aggregate basis, we do not envisage any revision in our operation earnings and have made slight revisions in our valuation multiples to reflect the slowdown in consumption space. We have maintained Accumulate rating on ITC with a TP of Rs300, indicating an upside of 13% from the CMP.
HDFC Securities
5-Aug-19
Price @ Call: 259.62
Target: 362
BUY
ITC’s 1Q performance was soft vs. its FY19 show but in-line with FMCG peers. We expect 1Q growth trajectory to replicate over FY20, led by higher base of cig. volume growth and consumption slowdown. We value ITC on SoTP basis and arrive at a TP of Rs 362 (implied P/E of 28x vs. earlier assigned P/E of 32x). We de-rate cigarette business by 10% (EV/EBITDA 18x vs. 20x implied earlier) owing to slower than expected volume growth in the era of stable taxes. Maintain BUY.
Elara Capital
4-Aug-19
Price @ Call: 264.72
Target: 310
ACCUMULATE
Upgrade to Accumulate with unchanged TP of INR 310
We retain our estimates with a 4% CAGR in cigarette volume and ~4% price hike in FY20 to lead to ~10% EBIT growth in cigarettes. We upgrade the stock to Accumulate from Reduce as the stock has corrected by 13.3% in the past three months with an unchanged TP of INR 310 on 24x FY21E P/E.
We retain our estimates with a 4% CAGR in cigarette volume and ~4% price hike in FY20 to lead to ~10% EBIT growth in cigarettes. We upgrade the stock to Accumulate from Reduce as the stock has corrected by 13.3% in the past three months with an unchanged TP of INR 310 on 24x FY21E P/E.
Prabhudas Lilladher
2-Aug-19
Price @ Call: 264.72
Target: 367
BUY
ITC is likely to face near term headwinds in demand, long term outlook looks promising given sustained innovations new launches in snacking and dairy. Paperboard business is in fine fettle given gains from steady prices and benign input costs. Hotels ARR and occupancy indicates steady improvement in profits, however we are far off from pre 2009 profitability. ITC trades at 21.5xFY21 EPS, ~40% discount to our coverage universe with 2.2% dividend yield. Risk reward remains favorable, although returns might be back ended due to poor visibility on cigarette volumegrowth. Retain “Buy” with SOTP based target price of Rs367 (Rs369 earlier).
AnandRathi
15-Jul-19
Price @ Call: 274.95
Target: 352
BUY
Axis Direct
31-May-19
Price @ Call: 282.4
Target: 315
BUY
We believe an improving volume trajectory and adjudicated price actions in its core cigarette business are key catalysts to sustain a healthy growth momentum going ahead. Notwithstanding punitive taxation we believe ITC trades at a inexpensive valuations (21x Mar-21E EPS; ~40% discount to FMCG Index P/E) and undemanding expectations gives us comfort on earnings delivery over the long term. We maintain “BUY”on ITC with unchanged TP of Rs. 315 based on its FY21E EPS (24x P/E on FY21E earnings).
Nirmal Bang
14-May-19
Price @ Call: 289.85
Target: 320
ACCUMULATE
On an aggregate basis, we do not envisage any revision in our operating estimates and have retained Accumulate rating on ITC with a target price of Rs320 based on SOTP valuation, indicating an upside of 11% from the CMP.
Dolat Capital
14-May-19
Price @ Call: 294.7
Target: 320
BUY
Volume growth improvement continues; Maintain Buy.ITC’s Q4FY19 results were marginally ahead of our estimates. The cigarette business posted +9% volume growth, which was ahead of our estimate of 7%. However, decline in margins in the cigarette business is a cause for concern. Despite sluggish demand in Q4, ITC’s FMCG business delivered 7.3% increase in top-line and 100bps expansion in margin, was encouraging. We have maintained our FY20E and FY21E EPS estimates at ` 11.2 and ` 12.2, respectively. In our view, the stock is trading at a steep discount to peers and is an attractive bet. We value the stock at 26x PE, to arrive at a TP of ` 320. Maintain Buy. In volatile market conditions we believe that there would be some pressure on stock. Nevertheless, in the long run we maintain positive view on ITC.
Sharekhan
14-May-19
Price @ Call: 294.7
Target: 347
BUY
Broadly maintained earnings estimates; Maintain Buy with unchanged PT of Rs. 347: We have broadly maintained our earnings estimates for FY2020 and FY2021 and we expect revenues and earnings to clock a CAGR of 12% each over FY2019-21. the company’s focus on become a diversified play by investing higher in businesses such as the Non-cigarette FMCG and Hotel augurs well for the company in long run. ITC is currently trading at 23x its FY2021E earnings, at a stark discount to some of the large FMCG stocks. In view of its steady performance in the core cigarette business and discounted valuations we maintain our Buy recommendation on the stock with an unchanged price target (PT) of Rs. 347.
HDFC Securities
14-May-19
Price @ Call: 294.7
Target: 398
BUY
ITC’s 4Q/FY19 performance was robust vs. its delivery over FY15-18. Cigarette volume growth has returned owing to a stable tax regime, which validates our thesis that ITC’s performance will improve as affordability returns. We aren’t too perturbed with near term margin pressure, as cigarette biz commands the highest margins across industries (volumes matter). We maintain BUY and value ITC on FY21E EPS at 32x, arriving at a TP of Rs 398.
Prabhudas Lilladher
13-May-19
Price @ Call: 295.97
Target: 369
BUY
ITC reported yet another steady quarter with ~7.5% cigarette volume growth and sustained expansion in margins across FMCG and Paperboards business. Cigarette demand outlook remains positive, sans any sharp increase in GST rates in coming months. FMCG business faces near term demand headwinds, however long term trajectory of double digit topline growth, category expansion and steady increase in margins looks intact (108bps EBIT margin expansion in FY19, target of double digit margins in 5 years) post restructuring of lifestyle retailing business. Paperboard business is in fine fettle given gains from steady prices and benign input costs. Hotels ARR and occupancy indicates steady improvement in profits, however we are far off from pre 2009 profitability. ITC trades at 22.7xFY21 EPS, 35-40% discount to our coverage universe and 2% dividend yield limits downside in the stock. We believe that stable cigarette taxation regime can re-rate the stock. Retain “Buy” with SOTP based target price of Rs369 (Rs364 earlier).
Axis Direct
25-Feb-19
Price @ Call: 0
Target: 315
BUY
Sharekhan
29-Jan-19
Price @ Call: 274.65
Target: 347
BUY
Nirmal Bang
28-Jan-19
Price @ Call: 279.25
Target: 310
ACCUMULATE
Prabhudas Lilladher
24-Jan-19
Price @ Call: 277.7
Target: 364
BUY
Motilal Oswal
24-Jan-19
Price @ Call: 277.7
Target: 300
NEUTRAL
HDFC Securities
24-Jan-19
Price @ Call: 277.7
Target: 383
BUY
ITC Share Price Target - Broker Reports - 2018
Indiabulls Ventures
29-Nov-18
Price @ Call: 282.05
Target: 335
BUY
ICICIdirect.com
29-Oct-18
Price @ Call: 280.65
Target: 365
BUY
HDFC Securities
29-Oct-18
Price @ Call: 282.69
Target: 382
BUY
Sharekhan
27-Oct-18
Price @ Call: 281.21
Target: 347
BUY
Motilal Oswal
27-Oct-18
Price @ Call: 281.21
Target: 295
NEUTRAL
Prabhudas Lilladher
26-Oct-18
Price @ Call: 281.21
Target: 364
BUY
Dolat Capital
26-Oct-18
Price @ Call: 281.21
Target: 320
ACCUMULATE
JM Financial
27-Sep-18
Price @ Call: 293
Target: 340
BUY
Axis Direct
24-Sep-18
Price @ Call: 299.46
Target: 335
BUY
HDFC Securities
19-Sep-18
Price @ Call: 301.97
Target: 382
BUY
Edelweiss
5-Sep-18
Price @ Call: 311.11
Target: 405
BUY
Geojit Financial Services
13-Aug-18
Price @ Call: 305.84
Target: 336
BUY
KRChoksey
3-Aug-18
Price @ Call: 299.05
Target: 350
BUY
Kotak Securities
28-Jul-18
Price @ Call: 302.2
Target: 330
BUY
Prabhudas Lilladher
27-Jul-18
Price @ Call: 287.15
Target: 346
BUY
Edelweiss
27-Jul-18
Price @ Call: 287.15
Target: 328
HOLD
Dolat Capital
27-Jul-18
Price @ Call: 287.15
Target: 320
ACCUMULATE
HDFC Securities
27-Jul-18
Price @ Call: 301.75
Target: 353
BUY
ICICIdirect.com
27-Jul-18
Price @ Call: 301.75
Target: 365
BUY
JM Financial
27-Jul-18
Price @ Call: 301.75
Target: 340
BUY
JM Financial
4-Jul-18
Price @ Call: 265.15
Target: 335
BUY
Motilal Oswal
3-Jul-18
Price @ Call: 263.05
Target: 290
NEUTRAL
Prabhudas Lilladher
19-Jun-18
Price @ Call: 264.15
Target: 346
BUY
KRChoksey
6-Jun-18
Price @ Call: 269.27
Target: 303
ACCUMULATE
Dolat Capital
18-May-18
Price @ Call: 282.63
Target: 310
ACCUMULATE
ICICIdirect.com
18-May-18
Price @ Call: 282.63
Target: 330
BUY
HDFC Securities
18-May-18
Price @ Call: 282.63
Target: 358
BUY
Prabhudas Lilladher
17-May-18
Price @ Call: 285.95
Target: 346
BUY
Motilal Oswal
17-May-18
Price @ Call: 285.95
Target: 295
NEUTRAL
Kotak Securities
17-May-18
Price @ Call: 285.95
Target: 330
BUY
Edelweiss
17-May-18
Price @ Call: 285.95
Target: 320
HOLD
JM Financial
17-May-18
Price @ Call: 282.63
Target: 335
BUY
IIFL
20-Mar-18
Price @ Call: 258.68
Target: 400
BUY
Edelweiss
1-Feb-18
Price @ Call: 271.25
Target: 313
HOLD
Kotak Securities
23-Jan-18
Price @ Call: 273.35
Target: 318
BUY
ICICIdirect.com
22-Jan-18
Price @ Call: 273.85
Target: 320
BUY
Prabhudas Lilladher
20-Jan-18
Price @ Call: 274.39
Target: 333
BUY
Motilal Oswal
20-Jan-18
Price @ Call: 274.39
Target: 278
NEUTRAL
KRChoksey
19-Jan-18
Price @ Call: 274.39
Target: 349
BUY
Edelweiss
19-Jan-18
Price @ Call: 274.39
Target: 313
HOLD
ICICIdirect.com
18-Jan-18
Price @ Call: 265.9
Target: 302
BUY
Edelweiss
11-Jan-18
Price @ Call: 269.6
Target: 307
HOLD
HDFC Securities
9-Jan-18
Price @ Call: 265.35
Target: 358
BUY
ITC Share Price Target - Broker Reports - 2017
Shahina Mukadam
22-Nov-17
Price @ Call: 256.3
Target: 300
BUY
Motilal Oswal
10-Nov-17
Price @ Call: 261.71
Target: 280
BUY
Sharekhan
3-Nov-17
Price @ Call: 266.04
Target: 325
BUY
HDFC Securities
3-Nov-17
Price @ Call: 266.04
Target: 358
BUY
Axis Direct
3-Nov-17
Price @ Call: 266.04
Target: 320
BUY
Motilal Oswal
30-Oct-17
Price @ Call: 269.35
Target: 280
NEUTRAL
ICICIdirect.com
30-Oct-17
Price @ Call: 269.35
Target: 320
BUY
Edelweiss
30-Oct-17
Price @ Call: 269.35
Target: 307
BUY
Kotak Securities
30-Oct-17
Price @ Call: 269.35
Target: 306
BUY
Axis Direct
30-Oct-17
Price @ Call: 269.35
Target: 320
BUY
Axis Direct
10-Oct-17
Price @ Call: 268
Target: 330
BUY
HDFC Securities
25-Sep-17
Price @ Call: 268.25
Target: 322
BUY
Sharekhan
3-Sep-17
Price @ Call: 283.4
Target: 325
BUY
Axis Direct
2-Aug-17
Price @ Call: 289
Target: 330
BUY
ICICIdirect.com
28-Jul-17
Price @ Call: 289
Target: 320
BUY
HDFC Securities
28-Jul-17
Price @ Call: 289
Target: 353
BUY
Reliance Securities
28-Jul-17
Price @ Call: 289
Target: 336
BUY
Edelweiss
27-Jul-17
Price @ Call: 289
Target: 304
BUY
Axis Direct
24-Jul-17
Price @ Call: 292
Target: 330
BUY
Sharekhan
4-Jul-17
Price @ Call: 342.3
Target: 380
BUY
ICICIdirect.com
3-Jul-17
Price @ Call: 342
Target: 407
BUY
Reliance Securities
23-Jun-17
Price @ Call: 310.9
Target: 363
BUY
Geojit Financial Services
12-Jun-17
Price @ Call: 306
Target: 336
BUY
Sharekhan
31-May-17
Price @ Call: 308.65
Target: 350
BUY
Reliance Securities
30-May-17
Price @ Call: 309
Target: 363
BUY
ICICIdirect.com
29-May-17
Price @ Call: 310
Target: 345
BUY
Axis Direct
7-Feb-17
Price @ Call: 281
Target: 295
BUY
Axis Direct
2-Feb-17
Price @ Call: 275.13
Target: 280
BUY
ICICIdirect.com
1-Feb-17
Price @ Call: 258
Target: 300
BUY
Kotak Securities
30-Jan-17
Price @ Call: 259.55
Target: 280
ADD
Religare
27-Jan-17
Price @ Call: 257.4
Target: 270
BUY
ITC Share Price Target - Broker Reports - 2016
KRChoksey
26-Oct-16
Price @ Call: 238.75
Target: 286
BUY
Edelweiss
26-Oct-16
Price @ Call: 239
Target: 278
HOLD
ICICIdirect.com
6-Oct-16
Price @ Call: 236.65
Target: 265
BUY
Reliance Securities
3-Aug-16
Price @ Call: 253.85
Target: 291
BUY
Religare
22-Jul-16
Price @ Call: 251.65
Target: 270
BUY
Enochventures.com
21-Jul-16
Price @ Call: 250.45
Target: 300
HOLD
Reliance Securities
20-Jun-16
Price @ Call: 239.47
Target: 256
BUY
Enochventures.com
2-Jun-16
Price @ Call: 238.53
Target: 266.67
HOLD