New Delhi [India], May 19 : Centrum Broking has given a "Buy" recommendation for ITC stocks, a day after the FMCG major released its Q4 earnings.
The brokerage firm on Friday pegged ITC's shares at Rs 486, with a return on investment potential of about 16 per cent for investors.
"It is the only company which has successful brands from staples (Aashirvaad) to RTC and RTE (Sunfeast, bingo, Yippee etc.): ITC has made consistent investments in brand building over the past decade helping create brands across the branded packed food categories...," the brokerage said in its report.
"Overall company ticks all the boxes strong cash flows, good management, high dividend yield, and strong business moat that gives us the confidence to call it a high conviction buy," it said.
FMCG major ITC Ltd on Thursday reported its earnings for the quarter that ended in March and for the entire 2022-23 fiscal.
The company registered a 22.7 per cent rise in its consolidated net profit at Rs 5,225 crore in March 2023 quarter. In the same quarter last year, it was Rs 4,260 crore.
For the entire 2022-23, consolidated net profits were at Rs 19,428 crore versus Rs 15,486 crore in 2021-22.
Coming to its consolidated revenue from operations, in the March quarter and the entire 2022-23, it was Rs 19,058 crore and Rs 76,518 crore versus Rs 17,754 crore and Rs 65,204 crore, respectively, in the corresponding period of last year.
The company's Board recommended a final dividend of Rs 6.75 and a special dividend of Rs 2.75 for 2022-23. All eligible members will be paid dividends between August 14 and 17.
Taking into account the February 3 dividend worth Rs 6 per share, the total dividend payment per share goes up to Rs 15.50.
A dividend is a reward that companies often provide to their shareholders, though not mandatory, from a portion of their earnings.
ITC has a diversified presence in FMCG, hotels, packaging, paperboards and speciality papers and agri-business.
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