Analyst Corner: Retain ‘hold’ on ITC with TP of Rs 265

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Turning a brand new leaf: In a welcome step to enhance transparency and disclosure ranges, ITC will maintain its first-ever analyst meet (a long-standing investor demand). We define 13 questions that buyers ought to ask ITC. In our view, this step by ITC to turn out to be extra investor-friendly and meet up with greatest practices of peer set is welcome. ITC has been proactively taking suggestions from buyers over the previous few years. We admire higher disclosures in its quarterly experiences. Even so, be careful for the Union Funds on February 1 for cigarette taxes. Total, ESG-led investing is assuming significance and ITC is consciously striving to climb up the ESG ladder. Retain ‘HOLD’ with a TP of Rs 265.

ITC has been aggressive and proactive underneath CMD Sanjiv Puri. ITC not too long ago acquired a 16% stake in D2C model Mom Sparsh. Over the previous few years, ITC has scaled up its FMCG acquisitions nicely (Savlon, Dawn, Nimyle, B Naturals). Its FMCG enterprise has tied up with Inox Leisure and McDonald’s, which exhibits its out-of-the-box pondering. ITC has been probably the most aggressive firm in getting approval for PLI in Meals. It has elevated the dividend payout and in addition put inns on a low capex mannequin through administration contracts. The corporate has additionally forayed into the breakfast section with ready-to-cook and ready-to-mix choices. Total, ESG-led investing is assuming significance, and ITC is consciously striving to climb up the ESG ladder. Be careful for Union Funds on February `and proposals of the panel on tobacco tax, a key variable. Retain ‘HOLD/SN’ with a TP of Rs 265.