IDBI Capital maintained 'Buy' rating on ITC with target price of Rs 275 post Q4 results.

FMCG major ITC reported in-line results. Overall business witnessed strong recovery in discretionary and out of home products which grew 23%YoY (vs 5% decline in 3QFY21) while health, hygiene and food portfolio grew 13%YoY. Cigarettes business also witnessed continued recovery (volumes reached pre-covid levels towards the end of Mar'21) driven by progressive easing of restriction and increased mobility.

Revenue growth of agri and paperboards, paper and packaging segment also remained very strong. Hotel business after breaking even in 3QFY21 recorded positive EBITDA of Rs 250 million in 4QFY21 driven by cost interventions and business recovery.

On margins; except FMCG-non-cigarette business, all other segments witnessed operating profit margin contraction YoY.

The broking firm said, "Broadly we maintain our previous estimates for FY22-23E and target price at Rs 275. We maintain our 'BUY' rating on the stock due to in-expensive valuation."

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.