ITC Shares Hit 52-Week High For Second Straight Day; Sharekhan Sets Rs. 320/Share Target Price

ITC shares in trade on May 20, 2022 have hit fresh 52-high. The momentum has been maintained in the hotel to cigarettes major even on the second day after the Q4 results. The stock hit its 52-week high price of Rs. 282.35, while its share price settled at Rs. 280 per share on the NSE. The stock's lifetime low and high are Rs. 4.14 and Rs. 367.7 per share, respectively.

The company in its Q4Fy22 results announced 9% cigarette volume growth. For the just ended quarter of March i.e. being reviewed, the company logged 11.7% YoY growth in its consolidate PAT at Rs. 4916 crore backed by growth across segments. In the same period the PAT came in at Rs. 3755 crore. The company's consolidated revenue from operations was Rs 17,754 crore, up 15.3 per cent, from Rs 15,404 crore in the year-ago period.

Apart from the cigarettes, the FMCG business of the company performed well via focused cost management intervention across the chain, cost efficiencies etc.

After the results, many brokerage have recommended a 'Buy' on the counter, with Sharekhan giving the most bullish target price of Rs. 320 per share. The rationale as iterated by the brokerage said, TC put up a resilient show in Q4FY2022 with all businesses posting double digit revenue growth
in Q4FY22. Gross revenues (including other operating income) grew by 16% y-o-y to Rs. 16,426.0
crore with a 10% growth in the cigarette business, strong 30% growth in Agri business and 32%
growth in the paperboard, paper and packaging (PPP) business. Excluding agri business the gross
revenues was up by 13.9% in Q4. Gross margins decreased by 117BPS due to higher inflationary
pressures. OPM stood flat y-o-y at 13.6%. Operating profit and PAT grew by 16.8% y-o-y and 11.8%
y-o-y, respectively. For FY2022, Revenues grew by ~23% (excluding agri business grew by 16.6%)
and PAT grew by 15%. Total dividend for FY2022 stood at Rs. 11.5 per share vs. Rs. 10.75 per share
in FY2021".

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