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Buy ITC at 
294: Indiabulls Securities
Friday, 12 February 2010, 19:55 IST
Bangalore: With an expectation in ITC's revenue growth and profitability on the back of recovery in hotel business, Indiabulls Securities has recommended buy rating with a target price of 
294, reports Moneycontrol.com.
In its report the brokerage firm stated, "We expect an improvement in ITC's revenue growth and profitability on the back of recovery in hotel business, abridgment of losses in FMCG-others, higher realizations from cigarettes as well as paper and paperboards segment. Moreover, our DCF-based valuation gives a target price of 294, which provides an upside of 15 percent over the current market price (CMP) of 254.50. Thus, we recommend 'Buy' rating on the Stock."
ITC is an India-based company. The company operates in four segments: Fast Moving Consumer Goods (FMCG), Hotels, Paperboards, Paper and Packaging, and Agri Business. The FMCG segment includes Cigarettes, which comprises cigarettes and smoking mixtures, and Others, which include branded packaged foods (staples, biscuits, confectionery, snack foods and ready-to-eat foods), garments, educational and other stationery products, matches, agarbattis and personal care products. The Hotels segment operates approximately 100 hotels under four brands ITC Hotel, WelcomHotel, Fortune and WelcomHeritage. Paperboards, Paper and Packaging segment includes paperboards, paper, including specialty paper and packaging, including flexibles. The company's Agri Business segment markets agri commodities in the export and domestic markets, supplies agri raw materials to the branded packaged foods business and sources leaf tobacco for the cigarettes business.
It the company's stock is bought at Thursday's closing price of 247.15, the investor will get the profit of 18 percent.
294, reports Moneycontrol.com.
In its report the brokerage firm stated, "We expect an improvement in ITC's revenue growth and profitability on the back of recovery in hotel business, abridgment of losses in FMCG-others, higher realizations from cigarettes as well as paper and paperboards segment. Moreover, our DCF-based valuation gives a target price of 294, which provides an upside of 15 percent over the current market price (CMP) of 254.50. Thus, we recommend 'Buy' rating on the Stock."
ITC is an India-based company. The company operates in four segments: Fast Moving Consumer Goods (FMCG), Hotels, Paperboards, Paper and Packaging, and Agri Business. The FMCG segment includes Cigarettes, which comprises cigarettes and smoking mixtures, and Others, which include branded packaged foods (staples, biscuits, confectionery, snack foods and ready-to-eat foods), garments, educational and other stationery products, matches, agarbattis and personal care products. The Hotels segment operates approximately 100 hotels under four brands ITC Hotel, WelcomHotel, Fortune and WelcomHeritage. Paperboards, Paper and Packaging segment includes paperboards, paper, including specialty paper and packaging, including flexibles. The company's Agri Business segment markets agri commodities in the export and domestic markets, supplies agri raw materials to the branded packaged foods business and sources leaf tobacco for the cigarettes business.
It the company's stock is bought at Thursday's closing price of 247.15, the investor will get the profit of 18 percent.
