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Large Cap Stock Declares Dividend, PAT Up 21%: Axis Securities Recommends Buy For Gain
Large cap stock operating in Tobacco sector, ITC Ltd declared a 21% YoY jump in its net profit for the quarter ended December 31, 2022 to Rs 5031 crore, beating estimates. The stock rallied 62% in last 1-year. The company has also declared an interim dividend of Rs 6 per share. Leading brokerage firm, Axis Securities has assigned buy call to ITC Ltd with a target price of Rs 410 apiece. If you buy ITC Ltd now, you will get a likely return of 8% soon. Check details below:
1. ITC Ltd Declares Dividend, Fixes Record Date
The board of directors of the company in the regulatory filing stated, "Declared Interim Dividend of Rs. 6/- per Ordinary Share of Re. 1/- each for the financial year ending on 31st March, 2023; such Dividend will be paid between Friday, 3rd March, 2023 and Sunday, 5th March, 2023 to those Members entitled thereto."
The company has fixed February 15, 2023 as the record date for the purpose of interim dividend.
2. ITC Ltd Q3 Result
The company's revenue from operations surged marginally by 2.3% on year to Rs 16,226 crore. ITC's EBITDA (earnings before interest, taxes, depreciation and amortization) soared by 25% on year to Rs 5,183.5 crore.
The operating margin grew 574 basis points to 31.95%. Raw material cost during the quarter under consideration soared 21% on year to Rs 4,986.8 crore.
Cigarette sales in the quarter soared approximately 17% on year to Rs 7,288.22 crore.
3. ITC Stock Performance & Return
Stock Performance: The last trading price of the stock is Rs 380.50 with intraday gain of 0.50%. Its 52-week high is Rs 384.50 apiece and 52-week low is Rs 207.00 apiece, respectively. The company has a market capitalisation of Rs 4,72,353.27 crore, according to BSE.
Return: The stock rallied 23% in last 6-months, 62% in last 1-year, 83% in last 3-years, and 38% in last 5-years.
4. Valuation
According to Axis Securities, in its Feb 1, 2023 report, "Recovery in the cigarette business and uptick in Agri, Hotels, and Paperboard in the near term makes ITC a better play in the entire FMCG pack where valuations are high. We continue to remain positive on ITC and maintain a BUY rating with a revised TP of Rs 410 (22x FY25 EPS) vs. Rs 400 (22x Sep24 EPS), implying an upside of 14% from the CMP."
5. ITC Ltd About
Established in 1910, ITC Limited is a diversified conglomerate with businesses spanning Fast Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Education & Stationery Products, Incense Sticks and Safety Matches; Hotels, Paperboards and Packaging, Agri Business and Information Technology, according to its official website.
Disclaimer
The stock has been picked from the brokerage report of Axis Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.
