ITC - Another solid quarter. Raise estimates, retain ADD - Kotak

ITC reported a strong 4QFY13, beating ours as well as Street's estimates on both EBIT and PAT. Cigarette volume growth (+3% yoy) and EBIT breakeven for the FMCG business were the key positives. ITC remains one of the very few stocks in our sector coverage universe that fit our 'absolute upside without stretching operational or WACC assumptions' framework. Street's occasional negativity on taxation drag in the cigarette business will keep providing good accumulation opportunities on the stock. ITC is as good a long-term India consumption story as any, in our view.

We raise our TP to Rs350/share (Rs320 earlier); reiterate ADD.

Source : Equity Bulls

Keywords