Add ITC, target price Rs 350: HDFC Securities

HDFC Securities has add call on ITC with a target price of Rs 350.The current market price of ITC is Rs 328.65.
ITC, incorporated in the year 1910, is a Large Cap company (having a market cap of Rs 412086.70 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 30-09-2022, the company has reported a Consolidated Total Income of Rs 19062.68 Crore, up 1.34 % from last quarter Total Income of Rs 18810.18 Crore and up 24.49 % from last year same quarter Total Income of Rs 15313.15 Crore. Company has reported net profit after tax of Rs 4670.32 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 30-09-2022, the company has a total of 1,240 Crore shares outstanding.

Investment RationaleThe brokerage models 13.5% YoY growth in cigarette revenue, withvolume growth of 11% YoY (5% 3-year CAGR). The non Cigarette business is expected to grow 3% YoY (impactedby agribusiness).

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 30-Sep-2022, while FIIs owned 0 per cent, DIIs 31.48 per cent.