indiabull
31-12-2007, 06:42 PM
ITC
Cluster: Apple Green
Recommendation: Buy
Price target: Rs241
Current market price: Rs205
ITC's non-cigarette fast moving consumer goods (FMCG) business has grown by leaps and bounds over the last few years. The segment grew at a compounded annual growth rate (CAGR) of 77.6% over FY2004-07E to register revenues of Rs1,701.5 crore. The branded packaged foods division constitutes a major chunk and the growth of the segment. With presence across product categories of biscuits, staples, confectionery and snack foods, ITC has created big brands such as Sunfeast, Aashirvaad, Kitchens of India and the most recent Bingo. ITC is leveraging its wide sales and distribution network that has an unparallel reach throughout the country, economy and quality in procurement of inputs from its agri-business and strong cash flows from its cigarettes business to grow the branded foods business.
Cluster: Apple Green
Recommendation: Buy
Price target: Rs241
Current market price: Rs205
ITC's non-cigarette fast moving consumer goods (FMCG) business has grown by leaps and bounds over the last few years. The segment grew at a compounded annual growth rate (CAGR) of 77.6% over FY2004-07E to register revenues of Rs1,701.5 crore. The branded packaged foods division constitutes a major chunk and the growth of the segment. With presence across product categories of biscuits, staples, confectionery and snack foods, ITC has created big brands such as Sunfeast, Aashirvaad, Kitchens of India and the most recent Bingo. ITC is leveraging its wide sales and distribution network that has an unparallel reach throughout the country, economy and quality in procurement of inputs from its agri-business and strong cash flows from its cigarettes business to grow the branded foods business.