"We remain positive on the long term opportunity in ITC due to sustainable volume growth and strong pricing power in cigarette business - ITC has posted 15% cigarette EBIT CAGR since 2004 despite several tax shocks during the period. We are factoring 2% volume growth in cigarettes for FY13; we estimate 15.3% EBIT CAGR and 17% PAT CAGR over FY12-14. The stock trades at 26.9x FY13E and 22.8x FY14E EPS. Maintain Buy with a target price of Rs 270," says Motilal Oswal research report.
Phabhudas Lilladher is bullish on ITC and has recommended the stock with target price of Rs 275. He also said that ITC Ltd first quarter of FY13 results met their expectations, with sales, earning before interest tax, depreciation and amortization and profit after tax at Rs 6,650 crore, Rs 2,307 and Rs 1,602 respectively.
"We expect Lupin's net sales to post a 19.3% CAGR to Rs 10,082cr and earnings to report a 19.3% CAGR to Rs 32.4/share over FY201214E. Currently, the stock is trading at 22.2x and 18.7x FY2013E and FY2014E earnings, respectively. We maintain our Buy recommendation on the stock with a target price of Rs 647," says Angel Broking research report.
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