itc in equity 24jul21 ru - edelweissresearch.com
TRANSCRIPT
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KEY DATA
Rating HOLD Sector relative Neutral Price (INR) 212 12 month price target (INR) 241 Market cap (INR bn/USD bn) 2,615/35.1 Free float/Foreign ownership (%) 100.0/14.6
What’s Changed
Target Price ⚊
Rating/Risk Rating ⚊
QUICK TAKE
Cigarettes impacted; FMCG resilient
ITC’s Q1FY22 net revenue (up 37.1% YoY) came in line, but EBITDA (up 50.8% YoY) and PAT (up 28.6% YoY) undershot our estimates. Cigarette volumes rose 32% YoY on a soft base of -40% YoY. The FMCG segment’s revenue grew 10.4% YoY driven by hygiene, fragrance, spices, snacks, agarbattis and dairy products. High base effect in staples and convenience foods led to moderation in YoY growth. The
Hygiene segment performed well, delivering sequential growth after normalising in H2FY21 at elevated levels.
Overall ESG-led investing is assuming significance and ITC is consciously striving to climb up the ESG ladder. Retain ‘HOLD’ with an SoTP-based TP of INR241.
FINANCIALS (INR mn)
Year to March FY21A FY22E FY23E FY24E
Revenue 4,92,728 5,46,815 5,95,810 6,38,697
EBITDA 1,70,027 2,04,088 2,28,183 2,50,920
Adjusted profit 1,33,829 1,59,326 1,77,759 1,95,310
Diluted EPS (INR) 10.9 13.0 14.4 15.9
EPS growth (%) (15.5) 19.1 11.6 9.9
RoAE (%) 21.3 25.7 27.2 28.3
P/E (x) 19.5 16.4 14.7 13.4
EV/EBITDA (x) 14.2 11.7 10.4 9.3
Dividend yield (%) 5.1 4.9 5.4 6.0
PRICE PERFORMANCE
Cigarettes suffer wave 2 impact, FMCG business robust
Cigarettes volumes were impacted by the second wave (down ~21% on two-year
basis); however, week‐on‐week improvement is underway since mid-June with most
markets returning to normalcy and witnessing faster recovery compared with the
first wave. Cigarettes’ net revenue grew 33% compared with 7% in Q4FY21. The
FMCG business showed robust performance with 10.4% growth in revenue.
Education & Stationery Products’ business remains impacted due to continued
closure of educational institutions. The Discretionary segment clocked good YoY
growth on a favourable base; however sequential performance was hit due to the
second covid wave. FMCG e-commerce sales more than doubled to 8% of segmental
revenue. FMCG EBITDA margin expanded for the 13th consecutive quarter, by 40bps
YoY. Cigarettes margin expanded 210bps YoY.
Other business
The hotel business was impacted due to a fresh round of mobility restrictions
triggered by the second covid wave. The hotel business is rebounding with the easing
of restrictions. Agri business (up 9.2% YoY) saw strong exports, led by wheat, rice
and leaf tobacco. There was no disruption in supplies to key customers of agri
business. The paper business shot up 54.2% YoY led by value added and décor paper.
Explore:
Outlook and valuation: Triggers awaited; maintain ‘HOLD’
While the cigarette opportunity in India remains attractive given per capita
consumption, investing modalities have changed with ESG assuming a significant
role. We maintain ‘HOLD/SN’ with a TP of INR241. The stock is trading at 14.7x FY23E
EPS.
Financials Year to March Q1FY22 Q1FY21 % Change Q4FY21 % Change
Net Revenue 1,22,171 89,113 37.1 1,32,947 (8.1)
EBITDA 39,922 26,466 50.8 44,730 (10.8)
Adjusted Profit 30,135 23,428 28.6 37,484 (19.6)
Diluted EPS (INR) 2.4 1.9 28.6 3.0 (19.6)
Above In line Below
Profit
Margins
Revenue Growth
Overall
36,000
39,600
43,200
46,800
50,400
54,000
150
170
190
210
230
250
Jul-20 Oct-20 Jan-21 Apr-21 Jul-21
ITC IN Equity Sensex
India Equity Research Consumer Staples July 24, 2021
ITC RESULT UPDATE
Abneesh Roy Tushar Sundrani +91 (22) 6620 3141 +91 (22) 6620 3004 [email protected] [email protected]
Corporate access
Financial model Podcast
Video
ITC
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Financial Statements
Income Statement (INR mn) Year to March FY21A FY22E FY23E FY24E
Total operating income 4,92,728 5,46,815 5,95,810 6,38,697
Gross profit 2,88,214 3,34,631 3,67,626 4,00,387
Employee costs 44,633 45,877 49,997 53,595
Other expenses 67,942 80,959 85,289 91,427
EBITDA 1,70,027 2,04,088 2,28,183 2,50,920
Depreciation 16,456 18,693 20,193 21,693
Less: Interest expense 446 639 662 662
Add: Other income 26,326 28,349 30,429 32,664
Profit before tax 1,79,451 2,13,105 2,37,757 2,61,229
Prov for tax 45,553 53,702 59,915 65,830
Less: Other adj 0 0 0 0
Reported profit 1,33,829 1,59,326 1,77,759 1,95,310
Less: Excp.item (net) 0 0 0 0
Adjusted profit 1,33,829 1,59,326 1,77,759 1,95,310
Diluted shares o/s 12,302 12,302 12,302 12,302
Adjusted diluted EPS 10.9 13.0 14.4 15.9
DPS (INR) 10.7 10.4 11.6 12.7
Tax rate (%) 25.4 25.2 25.2 25.2
Important Ratios (%) Year to March FY21A FY22E FY23E FY24E
Gross margin (%) 58.5 61.2 61.7 62.7
Con A&P (% of rev) 1.8 2.0 2.0 2.0
Staff cost (% of rev) 9.1 8.4 8.4 8.4
EBITDA margin (%) 34.5 37.3 38.3 39.3
Net profit margin (%) 27.2 29.1 29.8 30.6
Revenue growth (% YoY) (0.1) 10.3 9.0 7.2
EBITDA growth (% YoY) (11.7) 20.0 11.8 10.0
Adj. profit growth (%) (15.4) 19.1 11.6 9.9
Assumptions (%) Year to March FY21A FY22E FY23E FY24E
GDP (YoY %) (8.0) 9.0 7.0 7.0
Repo rate (%) 4.0 4.0 4.3 5.3
USD/INR (average) 75.0 73.0 72.0 71.0
Cigs- Vol growth (13.0) 7.0 6.0 4.0
Cigs- Pricing change 8.3 1.0 1.0 1.0
FMCG sales growth 14.6 10.0 8.0 8.0
Cig EBIT margin 59.8 60.0 63.0 65.0
FMCG EBIT margin 5.7 6.5 7.0 8.0
COGS % of sales 40.9 37.5 37.0 36.0
Valuation Metrics Year to March FY21A FY22E FY23E FY24E
Diluted P/E (x) 19.5 16.4 14.7 13.4
Price/BV (x) 4.3 4.1 3.9 3.7
EV/EBITDA (x) 14.2 11.7 10.4 9.3
Dividend yield (%) 5.1 4.9 5.4 6.0
Source: Company and Edelweiss estimates
Balance Sheet (INR mn) Year to March FY21A FY22E FY23E FY24E
Share capital 12,309 12,309 12,309 12,309
Reserves 5,91,165 6,23,030 6,58,582 6,97,644
Shareholders funds 6,03,473 6,35,339 6,70,890 7,09,952
Minority interest 3,468 3,544 3,628 3,717
Borrowings 95 95 95 95
Trade payables 43,187 40,457 43,511 45,398
Other liabs & prov 80,449 80,449 80,449 80,449
Total liabilities 7,37,608 7,66,819 8,05,508 8,46,546
Net block 1,95,305 1,97,915 2,02,721 2,06,028
Intangible assets 37,680 37,680 37,680 37,680
Capital WIP 40,113 40,000 40,000 40,000
Total fixed assets 2,73,098 2,75,594 2,80,401 2,83,708
Non current inv 1,00,245 1,00,245 1,00,245 1,00,245
Cash/cash equivalent 1,95,054 2,16,727 2,40,005 2,70,404
Sundry debtors 25,017 34,010 37,065 39,732
Loans & advances 75 75 75 75
Other assets 1,29,815 1,25,863 1,33,412 1,38,078
Total assets 7,37,608 7,66,819 8,05,508 8,46,546
Free Cash Flow (INR mn) Year to March FY21A FY22E FY23E FY24E
Reported profit 1,33,829 1,59,326 1,77,759 1,95,310
Add: Depreciation 16,456 18,693 20,193 21,693
Interest (net of tax) 446 639 662 662
Others 69 76 83 89
Less: Changes in WC (7,682) (7,771) (7,550) (5,446)
Operating cash flow 1,43,118 1,70,963 1,91,148 2,12,309
Less: Capex (43,356) (24,887) (25,000) (25,000)
Free cash flow 99,762 1,46,076 1,66,148 1,87,309
Key Ratios Year to March FY21A FY22E FY23E FY24E
RoE (%) 21.3 25.7 27.2 28.3
RoCE (%) 28.5 34.3 36.3 37.7
Inventory days 175 182 172 174
Receivable days 19 20 22 22
Payable days 72 74 69 71
Working cap (% sales) 9.8 10.3 10.8 10.9
Gross debt/equity (x) 0 0 0 0
Net debt/equity (x) (0.3) (0.3) (0.4) (0.4)
Interest coverage (x) 344.5 290.3 314.1 346.2
Valuation Drivers Year to March FY21A FY22E FY23E FY24E
EPS growth (%) (15.5) 19.1 11.6 9.9
RoE (%) 21.3 25.7 27.2 28.3
EBITDA growth (%) (11.7) 20.0 11.8 10.0
Payout ratio (%) 98.7 80.0 80.0 80.0
Edelweiss Securities Limited
ITC
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Trends at a glance
(%) Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22
Cigarette volume growth 3.0 3.0 2.0 (10.0) (40.0) (12.0) (5.0) 8.0 32.0
Net revenue growth YoY
FMCG-Cigarettes 6.0 6.0 4.7 (13.6) (37.8) (14.4) (7.8) 9.8 34.2
FMCG-Others 6.6 4.0 3.5 (2.8) 10.3 15.4 7.5 15.8 10.4
Hotels 15.0 17.7 22.2 (8.6) (94.2) (80.8) (57.4) (38.2) 463.5
Agribusiness 14.6 19.3 8.8 (10.2) 3.7 12.8 18.5 78.5 9.2
Paperboards, paper & packaging 12.7 9.9 0.8 (5.1) (32.8) (6.8) (5.0) 13.5 54.2
Overall revenue growth 6.0 5.9 5.0 (9.5) (20.8) (3.8) (0.1) 22.7 (7.7)
EBIT growth YoY
FMCG-Cigarettes 8.2 7.4 5.6 (11.7) (38.8) (15.6) (8.1) 7.7 36.7
FMCG-Others 55.7 54.8 40.4 12.6 60.7 179.3 92.7 28.4 38.3
Hotels (21.4) 12.0 44.8 (52.0) NM NM NM NM NM
Agribusiness 4.3 5.7 7.4 (16.4) (11.9) 2.7 (8.1) 54.2 9.5
Paperboards, paper & packaging 11.5 14.5 0.6 (4.9) (51.4) (7.2) (14.7) 13.1 145.3
Overall EBIT growth 8.7 8.5 6.5 (11.5) (42.3) (14.5) (9.4) 8.2 48.6
EBIT margins
FMCG-Cigarettes 70.8 72.2 70.7 74.7 72.2 75.0 73.4 73.4 73.5
FMCG-Others 2.5 2.8 3.2 4.6 3.7 6.7 5.8 5.1 4.7
Hotels 2.6 4.1 15.8 9.1 NM NM NM NM NM
Agribusiness 5.6 9.4 10.2 6.5 4.8 8.6 7.9 5.6 4.8
Paperboards, paper & packaging 21.6 22.7 21.5 19.6 15.6 22.6 19.3 19.5 24.8
Overall EBIT margins 39.3 38.8 37.8 37.3 29.1 35.1 34.8 32.9 31.6
Source: Company, Edelweiss Research
Innovations from ITC
Source: Company
ITC
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Innovations from ITC
Source: Company
Excerpts from ITC’s press release
Cigarettes
The strong volume recovery momentum witnessed in the second half of
FY21 was impacted by localised lockdowns and restricted store operation
in the wake of second wave of the pandemic.
Product accessibility was sustained despite market disruptions, using strong
distribution network. Rural servicing infrastructure was scaled up 3x and 1.2x of
base quarter levels.
Certain markets in the South, metro cities and towns were more impacted.
After severe disruptions in May there has been a week on week pick up from
mid-June with most markets returning to normalcy.
Certain parts of Kerala, Odisha and the North East remain partially impacted.
Several innovative variants differentiated on vectors of flavour, filtration and
packaging format such as Classic Connect, Gold Flake Neo SMART Filter, Wave
Boss & Flake Nova have been launched in recent months
Edelweiss Securities Limited
ITC
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Cigarette volumes
Source: Company
FMCG – Others
FMCG business saw strong second covid wave impact.
The second wave too triggered a demand uptick in staples and
in convenience foods.
The trend of consumers stocking up essentials was far less pronounced in
comparison to the lockdown phase last year. Heightened concerns on hygiene
& safety continued to manifest in consumers’ preference for trusted brands.
Savlon range of Hygiene products bounced back, normalizing at elevated levels
in H2FY21 to deliver a robust growth.
Discretionary products witnessed strong growth on a favourable base.
Second wave impacted sequential performance although magnitude was lower
compared to first wave.
Unlike first wave when there was surge in demand for staple and convenience
food there was a mild uptick this time.
Market and outlet coverage is at 1.4x and 1.1x respectively compared to pre‐
Covid levels.
FMCG sales in e-commerce more than doubled, taking its salience to 8% of
segment revenue
ITC e-store is now operational in 11 cities.
Branded packaged food
Aashirvaad and Yippee brands fortified their position with new variants and good
growth
Recent launched in Sunfeast brand includes include Sunfeast All Rounder, Choco
Crème and Vanilla Crème, Sunfeast Dark fantasy Choco nut fill. All of them have
received good response so far
Operations of Sunrise have been fully integrated with the Branded Packag
ed Foods Businesses of the Company.
-50.0
-30.0
-10.0
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FY1
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(Cig
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te v
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wth
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ITC
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Personal care
Savlon sustained good growth despite high base due to launch of disinfectant
product range
Fiama cooling gel bar Methanol and Magnolia and Savlon cool Hexa were
launched during the quarter
Mangaldeep showed robust growth on favourable base
FMCG EBITDA margin
Source: Company
Hotels
Second wave led to fresh restrictions on mobility and travel which impacted
business
Despite all the challenges, the domestic leisure segment saw some uptick
Flavours and Gourmet couch home delivery offerings did well.
ITC Windsor became the first in the world to receive prestigious LEED Zero
Carbon Certification
Paper, Paperboards and Packaging
The Paperboards, Paper and Packaging segment revenue was up 54%YoY driven
by value-added and décor paper.
The segment saw significant expansion in margin led by expansion of in-house
pulp manufacturing and cost control.
Agri business
Strong growth in Wheat, Rice & Leaf Tobacco exports and Soya in the domestic
market.
Business remains focused on its strategy to rapidly scale up value added
products.
Major customers saw no disruptions in supply.
0.0
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4.0
6.0
8.0
10.0
Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22
(%)
FMCG EBITDA margin (%)
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ITC
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Segmental performance
Year to March - Net Revenues (INR mn) Q1FY22 Q1FY21 % growth YoY Q4FY21 % growth QoQ
Cigarettes (Note 1) 43,802 32,634 34.2 49,973 (12.3)
FMCG - Others 37,256 33,746 10.4 36,875 1.0
Hotels 1,272 226 463.5 2,878 (55.8)
Agribusiness 40,913 37,463 9.2 33,689 21.4
Paperboards, paper & packaging 15,827 10,264 54.2 16,559 (4.4)
Less: Inter-segment revenue 17,645 25,881 (31.8) 8,363 111.0
Net income (Excl other income) 1,21,424 88,452 37.3 1,31,611 (7.7)
EBIT (INR mn)
FMCG-Cigarettes (Note 1) 32,209 23,564 36.7 36,665 (12.2)
FMCG-Others 1,734 1,254 38.3 1,886 (8.1)
Hotels (1,515) -2,426 NM (401) NM
Agribusiness 1,957 1,787 9.5 1,899 3.1
Paperboards, paper & packaging 3,928 1,601 145.3 3,233 21.5
Profit before tax (Excl other income) 38,315 25,781 48.6 43,281 (11.5)
Year to March - Margin Q1FY22 Q1FY21 bps exp y-o-y Q4FY21 bps exp q-o-q
Cigarettes (Note 1) 73.5 72.2 133 73.4 17
FMCG - Others 4.7 3.7 94 5.1 (46)
Hotels NM (1,074.3) NM (13.9) NM
Agribusiness 4.8 4.8 1 5.6 (85)
Paperboards, paper & packaging 24.8 15.6 922 19.5 530
Margin 31.6 29.1 241 32.9 (133)
Source: Company, Edelweiss Research
Note 1: Cigarette revenue decline and EBIT decline is directionally correct but quantification slightly exaggerated since excise is on manufacture
whereas revenue is recorded on actual sale.
ITC
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Outlook and valuation: Needs more to re-rate; maintain ‘HOLD’
After the surprise rate hike in GST, there has been no change in rates during the GST
regime. However, the National Calamity Contingent Duty (NCCD) tax hike
announced during the Union budget 2020 raises concern that now the government
has two levers to tweak taxes—the Union budget and GST meetings. The price hike
may lead to better GST collections, but its impact on volumes needs to be
monitored. Milder rate hikes cannot be ruled out as GST collections have remained
sub-par.
For the FMCG business, the company would like to see market share gains across
most categories. Food continues to perform well while covid-19 has boosted sales
of hygiene products such as hand sanitizers, hand wash, antiseptic liquids and floor
cleaners in the personal care portfolio. EBITDA margin expansion is on the right
trajectory; management estimates double-digit EBITDA margin over the next few
quarters.
While the cigarette opportunity in India remains attractive given per capita
consumption, investing modalities have changed with ESG assuming a significant
role. We maintain ‘HOLD/SN’ with a TP of INR241. The stock is trading at 14.7x FY23E
EPS.
SoTP valuation
Dec 2022E Methodology Target
multiple
Per share
contribution
Cigs EPS 9.6 P/E 12x 115
FMCG Sales/Share 13.7 P/S 5x 69
Hotels EBITDA/Share 0.4 EV/EBITDA 10x 4
Agri EBITDA/Share 1.1 EV/EBITDA 15x 16
Paper EBITDA/Share 1.2 EV/EBITDA 15x 18
Net cash 18
Value of share 241
Source: Edelweiss Research
One-year forward P/E
Source: Edelweiss Research
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Edelweiss Securities Limited
ITC
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Financial snapshot
Year to March Q1FY22 Q1FY21 % change Q4FY21 % change FY21 FY22E FY23E
Net revenues 1,21,424 88,452 37.3 1,31,611 (7.7) 4,89,528 5,39,728 5,88,202
Other operating income 747 661 12.9 1,336 (44.1) 3,200 7,087 7,607
Total operating income 1,22,171 89,113 37.1 1,32,947 (8.1) 4,92,728 5,46,815 5,95,810
Consumption of raw materials etc. 57,861 39,469 46.6 60,762 (4.8) 2,01,314 2,05,096 2,20,576
Gross profit 64,310 49,644 29.5 72,185 (10.9) 2,91,413 3,41,718 3,75,234
Staff costs 7,341 6,969 5.3 7,356 (0.2) 44,633 45,877 49,997
Other expenditure 17,048 16,209 5.2 20,099 (15.2) 76,753 91,754 97,053
Total expenditure 24,389 23,178 5.2 27,455 (11.2) 1,21,386 1,37,631 1,47,051
EBITDA 39,922 26,466 50.8 44,730 (10.8) 1,70,027 2,04,088 2,28,183
Depreciation 3,955 3,982 (0.7) 3,880 1.9 16,456 18,693 20,193
EBIT 35,967 22,484 60.0 40,851 (12.0) 1,53,571 1,85,394 2,07,990
Other income 4,290 8,968 (52.2) 7,720 (44.4) 26,326 28,349 30,429
Interest Expense 103 168 (38.5) 31 228.7 446 639 662
Profit Before Tax 40,154 31,284 28.4 48,539 (17.3) 1,79,451 2,13,105 2,37,757
Provision for Tax 10,019 7,857 27.5 11,055 (9.4) 45,553 53,702 59,915
Reported Profit 30,135 23,428 28.6 37,484 (19.6) 1,33,829 1,59,326 1,77,759
Prior period (net of tax) 0 0 NM 0 NM 0 0 0
Exceptional items (net of tax) 0 0 NM 0 NM 0 0 0
Adjusted profit 30,135 23,428 28.6 37,484 (19.6) 1,33,829 1,59,326 1,77,759
No. of shares (mn) 12,305 12,247 12,305 12,302 12,302 12,302
EPS (INR) 2.4 1.9 28.0 3.0 (19.6) 10.9 13.0 14.4
as % of net revenues
COGS 47.4 44.3 307 45.7 166 40.9 37.5 37.0
Staff expenses 6.0 7.8 (181) 5.5 48 9.1 8.4 8.4
Other expenditure 14.0 18.2 (424) 15.1 (116) 15.6 16.8 16.3
EBITDA 32.7 29.7 298 33.6 (97) 34.5 37.3 38.3
EBIT 29.4 25.2 421 30.7 (129) 31.2 33.9 34.9
PBT 32.9 35.1 (224) 36.5 (364) 36.4 39.0 39.9
Net profit 24.7 26.3 (162) 28.2 (353) 27.2 29.1 29.8
Tax rate 25.0 25.1 (16) 22.8 218 25.4 25.2 25.2
Source: Company, Edelweiss Research
ITC
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Company Description
ITC is one of the largest consumer companies in India with businesses spanning
across cigarettes, hotels, paper and agri-commodities. Its branded foods division
with products such as staples, confectionery, noodle, snacks and biscuits is doing
well and gaining strong market share across many categories. ITC has been
successful in foods and is expanding its personal product portfolio (soaps, shampoos,
deo, talc). Though the cigarettes division is still the major source of revenue, other
businesses - fmcg, agri, paper and hotel have grown over the years.
Investment Theme
ITC has sustained its market leadership in the cigarettes space and delivered decent
performance (both topline and profitability) amidst heavy taxation burden. The e-
Choupal network established by ITC gives it a phenomenal sourcing edge, which has
helped it transform into a consumer giant especially in foods business. ITC’s FMCG
business has shown good operating profitability in FY19 onwards and we expect that
trend to improve going ahead. Paper business helps address packaging needs of
FMCG business with consistent quality and comparatively lower costs. Agri business
has seen robust performance aided by tobacco leaf and traded commodities
exports; provides strategic sourcing support to the company’s cigarette and branded
packaged foods businesses by ensuring high quality supplies. We expect ITC’s
cigarette EBIT growth to remain resilient and FMCG’s profitability surge to sustain.
Key Risks
High incidence of taxation and strict regulatory norms on cigarette usage in public
and packaging poses threat to cigarette volume growth. Growing contraband market
of cigarettes also poses significant threat for the cigarettes business. Slowdown in
macro-economic environment is a major threat to hotels business. SUUTI stake sale
is a likely overhang on the stock
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ITC
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Additional Data Management
MD and CEO Mr. Sanjiv Puri
CFO Mr. Rajiv Tandon
Executive Director
Mr. Nakul Anand
Executive Director
Mr. B Sumant
Auditor S R B C & CO LLP
Holdings – Top 10* % Holding % Holding
LIC 16.23 General Insuran 1.76
Unit Trust Of I 7.92 Icici Prudentia 1.70
Qib Insurance C 2.75 Capital Group C 1.70
Sbi Funds Manag 2.27 New India Assur 1.49
Hdfc Asset Mana 2.01 Oriental Insura 1.11
*Latest public data
Recent Company Research Date Title Price Reco
01-Jun-21 Rerating demands more ; Result Update
215.25 Hold
16-Apr-21 E-store: Capturing online opportunity; Company Update
206.7 Hold
11-Feb-21 A mixed bag; Result Update 226.45 Hold
Recent Sector Research Date Name of Co./Sector Title
22-Jul-21 Hindustan Unilever Strong volume; margins to look up in H2; Result Update
19-Jul-21 Godrej Consumer Holy smoke: Decoding HI resurgence; Company Update
13-Jul-21 Hindustan Unilever Upping smartness and ESG quotient; Company Update
Rating Interpretation
Source: Bloomberg, Edelweiss research
Daily Volume
Source: Bloomberg
Rating Distribution: Edelweiss Research Coverage
Buy Hold Reduce Total
Rating Distribution* 170 54 19 244
>50bn >10bn and <50bn <10bn Total
Market Cap (INR) 214 40 5 259
*1 stocks under review
Rating Rationale
Rating Expected absolute returns over 12 months
Buy: >15%
Hold: >15% and <-5%
Reduce: <-5%
TP340
TP340 TP
315
TP250 TP
230
125
170
215
260
305
350
Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21
(IN
R)
ITC IN Equity Buy Hold Reduce0
30
60
90
120
150
Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21
(Mn
)
ITC
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