 "ITC hits 52-week high")
ITC has moved higher to its 52-week high of Rs 360, up 1%. It has extended its 9.5% rally in past four trading sessions on the BSE, after the company reported a better than expected results for the quarter ended March 2016 (Q4FY16).
The company had declared a bonus issue of one share for every two shares held while announcing its March quarter results last week. That apart, it has declared a final dividend of Rs 8.5 per share (including a special dividend of Rs 2 per share) for the current fiscal.
The stock will turn ex-dividend on Monday, May 30, 2016. It will turn ex-bonus on July 1, 2016.
Most of the brokerage houses maintain ‘buy’ rating on the stock with the target price (TP) in the range of Rs 370 to Rs 400.
“The company’s dividend pay-out ratio for FY16 stood at around 85%, marking the decade’s highest level. The volume growth outlook for the crucial cigarette segment (86% of FY16 earnings before interest tax) appears to be improving over the past two quarters, and we believe that the worst is now behind for the segment. Most of the negatives (including the onset of 85% pictorial warnings) are now factored into the stock price,” Motilal Oswal Securities said in a results update.
The brokerage house has raised target price to earnings (P/E) to 25 times and maintain Buy with a revised TP of Rs 400 from Rs 370 earlier, up by 21%.
J P Morgan has ‘overweight’ rating on the stock with TP of Rs 370.
“ITC’s Q4 operational performance was ahead of expectations, led by the cigarette division, which returned to double-digit EBIT growth after five quarters. Sequential improvement in cigarette volume offtake, steadily expanding cigarette margins and better performance by non-tobacco businesses (off a subdued FY16) would drive higher EPS growth/FCF generation and support multiple expansion,” J P Morgan said in a note.
Angel Broking recommends a buy on the stock with a TP of Rs 380 as broking firm believe ITC’s cigarettes business is well poised to continue to post a healthy profit growth over FY2016-18E due to its strong pricing power and improvement in volume growth.
Till 02:03 PM, a combined 4.76 million shares changed hands on the counter on the NSE and BSE.
The company had declared a bonus issue of one share for every two shares held while announcing its March quarter results last week. That apart, it has declared a final dividend of Rs 8.5 per share (including a special dividend of Rs 2 per share) for the current fiscal.
The stock will turn ex-dividend on Monday, May 30, 2016. It will turn ex-bonus on July 1, 2016.
Most of the brokerage houses maintain ‘buy’ rating on the stock with the target price (TP) in the range of Rs 370 to Rs 400.
“The company’s dividend pay-out ratio for FY16 stood at around 85%, marking the decade’s highest level. The volume growth outlook for the crucial cigarette segment (86% of FY16 earnings before interest tax) appears to be improving over the past two quarters, and we believe that the worst is now behind for the segment. Most of the negatives (including the onset of 85% pictorial warnings) are now factored into the stock price,” Motilal Oswal Securities said in a results update.
The brokerage house has raised target price to earnings (P/E) to 25 times and maintain Buy with a revised TP of Rs 400 from Rs 370 earlier, up by 21%.
J P Morgan has ‘overweight’ rating on the stock with TP of Rs 370.
“ITC’s Q4 operational performance was ahead of expectations, led by the cigarette division, which returned to double-digit EBIT growth after five quarters. Sequential improvement in cigarette volume offtake, steadily expanding cigarette margins and better performance by non-tobacco businesses (off a subdued FY16) would drive higher EPS growth/FCF generation and support multiple expansion,” J P Morgan said in a note.
Angel Broking recommends a buy on the stock with a TP of Rs 380 as broking firm believe ITC’s cigarettes business is well poised to continue to post a healthy profit growth over FY2016-18E due to its strong pricing power and improvement in volume growth.
Till 02:03 PM, a combined 4.76 million shares changed hands on the counter on the NSE and BSE.
