ITC is a diversified conglomerate, present across categories– Cigarettes, Other FMCG, Hotels, Paper & Agri-business. ITC is a market leader in the cigarettes category with volume market share of ~75%.
Valuation: Given ITC’s leadership position in cigarette category, continued investment in FMCG business and favourable risk reward, we recommend ‘BUY’ rating on the stock with a target price of Rs. 336 based on 30.5x FY20E EPS.
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