 "ITC hits two month high on good Q1 numbers")
ITC is trading 1.4% higher at Rs 362 on BSE after its cigarette business’ revenues grew 18.8% year-on-year (yoy) to Rs 4,201 crore and Ebit (earnings before interest and tax) margin up 142 basis points to 64.8% for the quarter ended June 2014 (Q1).
The country’s largest cigarette maker reported a better-than-expected 25% yoy rise in quarterly sales at Rs 9,160 crore during the quarter under review against Rs 7,339 crore in June 2013. The sales growth during the quarter was highest since March 2010 quarter.
The company has reported net profit of Rs 2,186 crore in the June quarter - a growth of 15.6% compared to Rs 1,891 crore in the year-ago period.
Gautam Duggad and Manish Poddar analysts at Motilal Oswal have reiterate ‘buy’ rating on the stock with a target price of Rs 400.
“Within our overall cautious sector stance, we find ITC relatively better placed as it offers the best earnings predictability driven by resilient cigarette EBIT growth of 18-20%”, said analyst in a research report.
The stock opened at Rs 360 and touched a high of Rs 364, its highest level since May 19, 2014, on BSE. A combined 3.94 million shares changed hands on the counter so far on BSE and NSE.
The country’s largest cigarette maker reported a better-than-expected 25% yoy rise in quarterly sales at Rs 9,160 crore during the quarter under review against Rs 7,339 crore in June 2013. The sales growth during the quarter was highest since March 2010 quarter.
The company has reported net profit of Rs 2,186 crore in the June quarter - a growth of 15.6% compared to Rs 1,891 crore in the year-ago period.
Gautam Duggad and Manish Poddar analysts at Motilal Oswal have reiterate ‘buy’ rating on the stock with a target price of Rs 400.
“Within our overall cautious sector stance, we find ITC relatively better placed as it offers the best earnings predictability driven by resilient cigarette EBIT growth of 18-20%”, said analyst in a research report.
The stock opened at Rs 360 and touched a high of Rs 364, its highest level since May 19, 2014, on BSE. A combined 3.94 million shares changed hands on the counter so far on BSE and NSE.