Sustained growth in these three segments will drive ITC stock's re-rating

Good print across segments and consistency in execution can drive re-rating of ITC from current levels, highlighted Kotak Institutional Equities

Analysts are finally turning optimistic about tobacco to FMCG conglomerate ITC as the company’s growth trajectory appears to be stabilizing. 
 

While some brokerages have moderately revised their target prices on the stock post December quarter (Q3FY22) results, consensus view backs a re-rating in the stock going-forward.
 

The company, on Thursday, reported 15 per cent year-on-year (YoY) rise in consolidated net profit at Rs 4,056 crore for the quarter ending December 31, 2021, while consolidated revenue from operations rose 30 per cent YoY to Rs 18,366 crore.
 

Segment-wise, revenue in cigarettes/FMCG/hotels/agri/paper segments grew 14/9/101/100/39 per cent YoY, respectively.

"Given the strong