Result Update: ITC Ltd - ACCUMULATE - TP Rs.318

ITC's 1QFY18 profits came in ahead of estimates, as cigarette sales and profits outperformed estimates. While the results may not be cause for celebration (largely in line with consensus), the results are likely to provide some confidence in the street about cigarette volume growth sustaining at higher prices. Valuations of ITC, following the sharp decline that followed higher GST rates, are attractive on a relative basis (27X FY19E, versus 35X-45X for larger FMCG peers). We maintain a positive stance on ITC - while we cut our price target to Rs 318 (Rs.342 earlier; earnings adjustments for GST rollout), we maintain ACCUMULATE.

Shares of ITC LTD. was last trading in BSE at Rs.285.15 as compared to the previous close of Rs. 291.25. The total number of shares traded during the day was 1559485 in over 12856 trades.

The stock hit an intraday high of Rs. 291.25 and intraday low of 284.5. The net turnover during the day was Rs. 446507623.

Source : Equity Bulls

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