te Buy ITC share, price target Rs 420: ICICI Securities | Zee Business

Buy ITC share, price target Rs 420: ICICI Securities

ITC Share price target 2023: ITC is focusing on de-risking its business model by reducing dependence on its core cigarette business by scaling up the fast-growing consumer goods, PPP, and hotel businesses.

Buy ITC share, price target Rs 420: ICICI Securities
ITC is focusing on de-risking its business model by reducing dependence on its core cigarette business. Image Source: PTI

ITC Share price target 2023: Domestic brokerage firm ICICI Securities is bullish on ITC. The firm in a report maintained Buy rating on the counter post strong Q3 performance across the segments.
 
ICICI Securities expects volume growth for formal industry to remain healthy in FY24E.  "We reckon,  there's  opportunity to drive price-driven growth as adverse effects of price elasticity reduces during times of  high consumer inflation like these. Cigarette business continues to report strong revenue growth driven by market share gain from informal segment due to stability in taxes and deterrent action by enforcement agencies," the report said. 

The company's agri-business was impacted by export restrictions. The report highlighted, "Agri-business witnessed pressure with the impact of restrictions imposed on wheat and rice exports by the government during  the  year  with  revenue  declining  37 per cent to  Rs 31.2 billion, however strong growth in high value added agri-products and leaf tobacco led to absolute EBIT growth of 33 per cent YoY.

The Indian conglomerate has a diversified presence across industries such as FMCG, hotels, software, packaging, paperboards, specialty papers and agribusiness. The company has 13 businesses in 5 segments. It exports its products in 90 countries. 

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ITC is focusing on de-risking its business model by reducing dependence on its core cigarette business  (affected by regulatory and tax hurdles for the past few years) by scaling up the fast-growing consumer goods, PPP, and hotel businesses, Sharekhan said. The company has quickly rebounded from disruption caused by the lockdown and key businesses are operating at normal levels.

ITC Share Price Target 2023

ICICI Securities recommended buying ITC shares for a price target of Rs 420.

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Written By: Paras Bisht
Edited By: Abhinav Ranjan
Updated: Wed, Feb 08, 2023
11:47 am
New Delhi, ZeeBiz WebDesk

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