Company: ITC Ltd. Category: Broker Research

FMCG business led by processed foods to show steady increase in profitability, personal care on urge of stabilizing, though Lifestyle retailing could remain a drag.
Jan. 24, 2019, 12:15 p.m.

Near-term outlook uncertain, valuations fair. We pored over ITC’s FY18 annual report.
July 2, 2018, 11:13 a.m.

ITC reported sales and EBIT of Rs113bn and Rs1.64bn in FY18 as margins increased 118bps to 1.4%.
June 19, 2018, 3:58 p.m.

The last Samvat was one of the most eventful years for the economy as well as the equity markets because of two major unprecedented events namely Demonetisation and Introduction of Goods and Services Tax (GST).
Oct. 11, 2017, 4:01 p.m.

ITC: To sail through another restrictive law on cigs - Axis Securities
Oct. 9, 2017, 9:40 a.m.

ITC Limited: Buy for a 23% upside
Oct. 5, 2017, noon

ITC trades at an attractive PE ratio of 25.4x, which is at a 30% discount to the FMCG sector multiples. Reliance Securities recommend investors to buy the stock with a SOTP-based target price of Rs336.
Sept. 25, 2017, 4:06 p.m.

ITC delivered a steady performance against the backdrop of continuing pressure on cigarette industry, sluggishness in demand for FMCG products (exacerbated by destocking in trade channels due to GST) subdued demand and unabsorbed capacity in the domestic paperboard industry and lower crop output & adverse quality of the Andhra leaf tobacco due to drought in 2016. Company’s revenues increased by 4.1% YoY (7.3% fall QoQ) to Rs. 13,800.4 crore in Q1FY18 from Rs. 13,253.1 crore in Q1FY17
Aug. 31, 2017, 12:11 p.m.

GST council has announced an increase in Cess rates on cigarette as the purpose of GST was to reduce taxes on goods of mass consumption but cigarettes, which fall in the category of demerit goods. Post non imposition of AED on cigarettes, the aggregate taxation on cigarettes had shown considerable decline in the GST regime.
Aug. 24, 2017, 4:49 p.m.

Prabhudas Lilladher estimates that GST has lowered taxes for ITC by 8‐10% by removal of AED, cascading effect of taxes and integration of numerous local taxes (entry tax, Octroi and luxury taxes etc.).  And will increase 15‐month target price for ITC to Rs400 (12 months TP of Rs330 earlier) reinforcing positive outlook post reduction in taxes under GST.
July 26, 2017, 5:47 p.m.

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