BSE Code: | NSE Code: | ISIN: | Sector:

NSE
267.05
Change Change %
-2.60 -0.96%

Updated:23 Oct, 2017, 15:59 PM IST

BSE
266.75
Change Change %
-2.85 -1.06%

Updated:23 Oct, 2017, 15:45 PM IST

Research Report Detail

Brokerage
Analyst
Report Date Call Price@Call Target Price
Stop Loss
Current Status Time Horizon
HDFC Securities
N/A
25-09-2017 Buy 262.15 322.00
N/A
Open Long (1Y)
25-09-2018

HDFC Securities maintains buy on ITC

ITC, number 4 company in terms of market capitalisation in India, has suffered at the hands of regulatory changes wherein a prior lenient GST rate under the new taxation regime was followed by an increase in the tax incidence for cigarettes. Cigarettes being the major source of revenue, the company's stock suffered. However, we feel that the market has overreacted and that other segments of the company, specifically the foods division under FMCG segment, the agri business and the hotels business have good growth potential and may drive up the profitability due to the efforts taken by company. With major capex in the hotels, foods business, reviving demand in the consumer segment, newer products in the agribusiness, and long term positive view on the cigarettes consumption in India, we expect company to drive up its profitability and get re-rated.

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