Shares of ITC Limited rose 5 per cent to hit an intraday high of Rs 236.50 on BSE after the company announced that it will hold its 'Institutional Investors and Financial Analysts Day' on December 14, 2021.
"We write to advise, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that the Company will hold its 'Institutional Investors and Financial Analysts Day' on Tuesday," ITC said in a press release.
The stock ended 4.60 per cent higher at Rs 235.30 against the previous close of Rs 224.95. With a market capitalisation of Rs 2,89,945 crore, the shares of ITC stand higher than 5 day, 20-day, 50-day, 100-day and 200-day moving averages.
The large-cap stock has risen 12.5 per cent since the beginning of this year and has delivered a 14.5 per cent return in the past 12 months.
The company said that the event will be hosted virtually and the entry is restricted only to institutional investors and financial analysts.
Brokerage house Motilal Oswal noted that the stock has considerably underperformed its benchmark and consumer peers over the last five years as well as the last 12 months.
"With PBT growth over FY20-23E (7.7per cent CAGR) likely to remain similar to growth in the preceding five years, valuations although relatively cheap compared to its consumer peers in India, are fair considering the concerns stated above. Taking into account the average one-year forward valuation of global peers at 11x, ITC trades at a 45% premium (16.3x)," it said.
The brokerage firm expects a dividend yield of 5-5.5 per cent over the next two years, in line with that of other global Cigarette players. We value ITC at 15x Dec'23E EPS and maintain our target price of Rs 240/share and our Neutral rating, it added.
ITC reported a 13.7 per cent year-on-year (YoY) rise in net profit for the quarter ended September 2021 at Rs 3,697 crore on the back of a strong pick up across all operating segments after severe disruptions in the preceding June quarter.
The company's net revenue grew 11.2 per cent to Rs 12,543 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 12.9 per cent to Rs 4,615 crore.
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