ITC posted a healthy set of numbers for 2QFY2017, both on the top-line and the bottom-line front. The top-line was healthy due to decent growth in cigarettes and other FMCG businesses, which resulted in a higher overall profitability of the company. We expect ITC to report a top-line and bottom-line CAGR of 10% and 15%, respectively, over FY2016-18E. At the current market price, the stock is trading at 23.7x its FY2018E EPS. We recommend a Buy rating on the stock with a target price of Rs284.

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