With operations back on track and strong cash flows generation, the company is expected to fare better than its peers. The world is still coming to terms with the COVID-19 outbreak and there is no doubt that the pandemic will change the world as we know it. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that … RoW markets grew 28.2% YoY to | 828 crore. - The founder/associates/relatives may have a financial interest in this/these stocks as retail investors themselves. Drastic demand drop impacts topline Q4FY20 standalone revenue stood at Rs. It is sun-dried, natural sea salt,” Puri says. 11,300cr (-6.3% YoY). ITC Maurya, a Luxury Collection Hotel Overview. (eg. Kerzner International Resorts and ITC Hotels Limited. ITC WelcomHeritage won the Best Heritage Hotel Brand award in 2006. b) FMCG Business: FMCG business is still in nascent stage and have subdued profits due to investments being made in brand building, new products etc. Growth of ITC FMCG Business. About ITC. Disclosure with regards to ownership and material conflicts of interest: The new menu has been introduced at a price range of Rs 625 to Rs 825. CMP: Rs174 34.8%). 8% cig. We value Radico at 18x P/E on Jun-22E EPS and derive a target price of Rs 426. Please do your own research before making any investment decisions. Despite the reduced growth divergence within categories, the divergence between urban and rural recovery continued to remain significant. We continue to remain optimistic and reiterate our BUY rating on the stock with a revised target price of Rs.... ITC reported a better than expected Q1FY21 revenue at Rs 9,436crs vs est. Company History - ITC Hotels ITCH was originally incorporated as Rama Hotels Pvt Ltd in 1972. AU Small Finance Bank: We maintain our ADD rating with a revised... Q1FY21 revenues grew 14% YoY to | 1671 crore (I-direct estimate: | 1651 crore) mainly due to 18.9% YoY growth in biosimilars to | 692 crore. We believe ITC would be one of the key beneficiary of an uptick in consumer demand given the depth and... All factories manufacturing FMCG products including cigarettes, paperboards and paper, as well as processing of leaf tobacco are currently operational (80-85% of normal levels) and are able to completely service customer demand. Price feed provided by www.nseindia.com and www.bseindia.com value addition by www.accordfintech.com. ITC is one of India's foremost private sector companies with a Gross Sales Value of ₹ 76,097 crores and Net Profit of ₹ 15,136 crores (as on 31.03.2020) with presence in FMCG, Hotels, Packaging, Paperboards & Specialty Papers, Agri & IT Businesses. It is part of the ITC Limited group of companies. - Broker has maintained previous recommendation but increased target price. Rs113.64bn). But within the hotel industry, ITC is the second-largest chain in India. However, growth for categories like packaged foods, essentials and hygiene segments witnessed moderation, while growth in healthcare continued to remain healthy. PAT... ITC's FMCG business reported 18.4% comparable sales growth and 9.7% EBIDTA margins even as 11.5% cigarette volume decline was disappointing. Overall gross margin was down 390bps YoY (+190bps QoQ) while EBITDA margin came in at 36.3%, down 280bps YoY (est. Zensar Technologies:We increase our P/E multiple to 12x (~8% discount to 5Y average) vs. 10x earlier. - The founder/associates/relatives have not received any compensation for investment banking/merchant banking/brokerage services/other products & services from the subject company in the past twelve months. Rural demand was the key driver of growth across channels and categories. Hence, companies with a strong presence and diversified offerings in e-comm will do well. The consensus estimate 18.4% decline to Rs32.8bn). 13.3% decline to Rs39.55bn). Delta vis--vis EBITDA was due... Expected dividend yield of 5-6% over the next two years and the apparent relief of cigarette sales bouncing back to near pre-COVID levels are not clear positives due to (a) persistent global ESG concerns on cigarettes (85% of EBIT in FY20), (b) overhang of further GST increase on cigarettes, (c) ITCs valuation premium to global tobacco majors like Philip Morris (trading at 15.2x one-year forward P/E) and BAT (at 8.1x), and (d) continuance of weak earnings trajectory (6.6% PBT CAGR over the last 5 years). Assuming multiple 10 to 12 times Ebit in line with other publicly traded tobacco businesses, valuation for cigarette business works out in the range of 1,60,000 to 2,00,000 Cr . We believe that calculated cig. 19.16x. These insights help the business decision-makers to formulate … This is the End-of-Day (EOD) Stock Price updated daily by 10 pm IST. 39 (3) - Details of Loss of Certificate / Duplicate Certificate, Results Declared in Last Two Days with both YoY and QoQ Profit Growth, MFs for your child's education or retirement, Create your own screener (from 1000+ indicators), Shareholding screeners for promoters, MFs, institutions, Just getting started? Ramagopal started his own consultancy practice in 1984, dealing with architectural engineering, interior design, PMC and valuation. Complete Disclaimer 1. Valuation. ITC generates revenue of 24,000 cr and Ebit of 16,000 cr. Looking at the chart, we can infer that Hotel business was ~3% of the overall revenues of the company in FY2019-20 [pre-COVID-19 era], hence the extent to which this business can impact the performance of the company speaks for itself. This number too shall change once the company's FMCG business breaks-even in a year or two and its hotel and paperboard business achieves scale to meaningfully contribute to the company's earnings. Categories like hair care and discretionary personal care saw a recovery, which was driven primarily by the value segment. However, we expect the divergence in demand to continue normalising and urban to bounce back, going forward. SWOT analysis of ITC Hotels analyses the brand/company with its strengths, weaknesses, opportunities & threats. Our TP of Rs 170 is based on 12x June-22E EPS. (-1.38%). Cigarette business is expected to report improved nos as June exit sale show recovery close to Pre Covid sales. ITC Ltd's (ITC) 2QFY21 standalone topline (adjusting for excise duty) declined by 4.1% YoY to Rs111.8bn (est. volume decline). We don't make any Buy/Sell recommendations and don't give any price targets. - The founder/associates/relatives have not managed or co-managed public offering of securities for the subject company in the past twelve months. EBITDA declined by 42% YoY to Rs26.5bn (est. -2.90 EU grew 30.0% YoY to | 247 crore. Smart-Investing.in © 2019 Made with Love in India, Contact Us : Customers: support@smart-investing.in Partnership : partnership@smart-investing.in, Disclaimer The only dampener now is localised lockdowns. The recovery momentum in Target Price: Rs215 the cigarette business witnessed towards the end of the previous quarter was affected by the localized lockdowns during the quarter. Year Built: 1977 Year Last Renovated: 2009 Check in Time: 2:00 PM Check out Time: 12:00 PM Number of Floors: 7 Chain: The Luxury Collection Chain Website: the-luxury-collection.marriott.com ITC Maurya, a Luxury Collection Hotel GDS Hotel … - Buy->Hold). Therefore, ITC Hotels has rolled out its ‘100% Back’ offer. The Generics segment grew 16.1% YoY to | 599 crore. COVID-19: U.S. hotel stocks, RevPAR in decline ITC Hotels highlights India outlook, protocols Force majeure: What owners, operators need to know Wednesday, March 18, 2020 It will take 5 years to restore pre-virus numbers: Analysis COVID-19: Industry fallout | Country restrictions grow U.S. hotel CEOs to White House: ‘Urgent action’ needed Click Here ITC Ltd's (ITC) 1QFY21 standalone topline (adjusting for excise duty; given separately instead of clubbing in other operating expenses in the base quarter) declined by 22.5% YoY to Rs89bn (est. ITC (NSE:ITC) WACC % Explanation Because it costs money to raise capital. EBITDA declined 5.5% YoY to | 413 crore against I-direct estimate of | 366 crore. 366 crore (margins rose 300 bps to 9.7%). Sector: FMCG Adj. While MT improved QoQ, growth momentum sustained for... ITC's Q2FY2021 performance was affected by localised lockdowns in July-August resulting in a 12% decline in volume of core-cigarette business (net sales was down by ~14%). Cigarette (Cig.) Three new hotels will be included in the recently renewed agreement Maintain ADD. ITC has a strong balance sheet and continues to focus... EBITDA margin contracted to 28.0% from 40.2% in Q1FY20, primarily due to raw material inflation (tobacco leaf), increased transportation costs, and high losses from hospitality business. EBITDA margins improved 266 bps YoY to 23.4% on account of a sharp drop in other expenditure amid Covid, partly offset by lower gross margins due to change in product mix. The company has invested heavily into FMCG, Agri-Business and Hotel business in the past 2 decades to diversify revenue streams. ITC Ltd.- 2QFY21 Result Update - Broad-based sequential recovery; Comfortable valuation; Maintain Buy, Q2FY21 Result Update - FMCG Shines, Cigarettes remain a drag - BUY, HSIE Results Daily: ITC, Ambuja Cements, AU Small Finance Bank, Mphasis, ABB India, Radico Khaitan, Zensar, Sharp Cigarette volume decline and Hospitality losses affect profits, ITC- 1QFY21 Result Update- FMCG-Others reduces pain seen in other businesses, Q1FY21 Result Update - Valuations reflect Global Tobacco aversion - BUY. US operator Marriott, which has 32 hotels … Easing of restrictions, innovative launches and reach Upside: 24%... Q2 revenues grew 14.6% YoY to | 5038 crore due to 19.8% YoY growth in domestic formulations to | 2090 crore. Recovery in demand continued across segments as easing of restrictions lifted sentiments. With the globalized world going into partial or complete shutdown, the overall impact on human life, economic growth and businesses is immeasurable, both in the short term and long term due to the uncertainty as things evolve. Adjusted PAT declined 27.6% YoY to | 149 crore (I-direct estimate: | 127 crore). The ITC Maurya, the Sonar Bangla, the ITC Maratha, Kakatiya and Rajputana all draw from the rich local history, weaving in a bit of the culture and the heritage of their cities. EBITDA margin improved sequentially to 34.1% from 28.0% in Q1FY20, owing to comparatively lower operational costs, however was down by 470bps vis--vis prior year levels. As on 21-Jan-2021, the Fundamentals of ITC LTD are Strong and hence it's good for long term investment! “Our salt is unique. Smart-investing.in makes no representations, warranties, or assurances as to the accuracy, currency or completeness of the content contained in this website or any sites linked to or from this website. As non-cigarette FMCG business scales up, its OPM is expected to improve further... Q2FY21 standalone revenue jumped 26.0% QoQ (+1.2% YoY) aided by growth in FMCG, Hotels and Paper businesses as economy opened up. Then there are the premium offerings. In 1974, the Company acquired a 4-acre plot of land from … ITC Ltd.s profit misses estimates, Profit Falls 25% but FMCG Revenue Rises 10.3%, Localized lockdowns are posing operational challenges Unprecedented disruptions in economic activity caused by nationwide lockdowns in the wake of COVID-19 pandemic weighed on the Company's performance during the quarter. Jersey City, New Jersey offers 22 hotels, the largest of which by amount of meeting space are the Hyatt Regency Jersey City on the Hudson, with 21,000 square feet of event space, and the The Westin Jersey City, Newport, with 20,227 square feet of event space.Check out the full directory of Jersey City, New Jersey meeting hotels … - See 6,178 traveler reviews, 4,034 candid photos, and great deals for ITC Mughal, Agra- a Luxury Collection Hotel at Tripadvisor. 215 (Rs. Research services segment remained flat YoY at | 422 crore. In no event, the website shall be liable for any expense, loss or damage, including, without limitation, indirect or consequential loss or damage, arising out of or in connection with the use of this website. 9,205crs (3% higher vs our estimates), it de-grew 17% YoY impacted by disruptions in operations due to nationwide lockdowns. General Disclosures: As on 25-Jan-2021, the Intrinsic Value of ITC LTD is, As on 25-Jan-2021, ITC LTD is trading at a Discount of. ITC Hotels Launch the Biryani and Pulao Collection to Reach Out to Larger Market. ITC Hotels is India's third largest hotel chain with over 100 hotels. View deals for Welcomhotel By ITC Hotels Shimla, including fully refundable rates with free cancellation. FMCG revenue declined 5.0% YoY to Rs. The business still earns 90% of the company's bottomline. You waive all defenses of lack of jurisdiction, venue, or forum non-convenience. WiFi and parking are free, and this hotel also features 2 restaurants. Hotels revenue dropped 8.4% YoY to Rs. By accessing this website, you agree that any disputes or matters arising out of or related to your viewing or use of this website shall fall in exclusive jurisdiction and venue in the courts of Pune, Maharashtra. Hotels account for a tiny share of ITC’s sales as well as implied valuation. Our view: We believe companies with higher revenue mix from rural will continue to benefit. Show Me the Stocks with Valuation better than ITC LTD. Is ITC LTD trading at a Premium or Discount? volume would have declined by ~12% YoY (est. As investors ourselves, we may have positions in some of the stocks at any given point of time. To reassure guests at iconic Hotels, the WeAssure programme has been launched to reinforce ITC Hotels' commitment towards health, hygiene and safety. Sector: FMCG... A 970bps decline in margin in the cigarette business indicates that the product mix was unfavorable and economy brand contribution must have increased during the quarter. - The founder/associates/relatives have not received any compensation from the subject company in the past twelve months. FMCG-Others reduces pain seen in other businesses NBIE Values your patronage- Vote for The Tam in the Asia Money poll 2020. Equity investments are volatile and high risk in nature. Hotels business is expected to remain under significant pressure in near term with poor chance of being in black for next... ITC is a market leader in traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports and is rapidly gaining share in the FMCG segment. Significant increase in duty has resulted in widening of price gap between ITC and smuggled cigarettes. Nascent segments where ITC is likely to scale up fast are juices, dairy, spices and salt. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. 10 each.... ITC Ltd.'s profit misses estimates, Q2 PAT declines 20% to Rs 3,232 cr Net sales fell 3.81% to Rs 11,098.24 crore in Q2 September 2020 over Q2 September 2019. List of Associates/Relatives: - The founder has not engaged in market making activity for the subject company in the past twelve months. Check out Financials of Industry Peers using below links: The Founder of this website, Mr. Rohit Katiyar is registered with SEBI as a Research Analyst [INH000007377]. We value ITC on SoTP and arrive at a target price of Rs 236 (implied P/E of 18x P/E Jun-22E EPS). from the last price of 207.80. Trailing Twelve Months (TTM) is calculated using last 4 quarterly data and is a good substitute to track Annual results. Cigarette sales started recovering from September but yet to reach preCOVID levels. Price to Earnings (PE) ratio. ITC has also entered the coffee and chocolates markets at the top-end luxury segments — via boutiques at ITC’s hotels and a few select malls. And Pulao Collection to reach INR 5,305.91 itc hotels valuation FY 2024 hence, companies with higher revenue mix from will! Situated adjacent to President 's estate, interior design, PMC and valuation our TP of Rs is! Demand drop impacts topline Q4FY20 standalone revenue stood at ~INR 4,002.76 in FY 2019 and is expected to report nos. Technologies: we believe companies with a strong presence and diversified offerings in e-comm do. 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By 11 % at Rs40.6bn ( est increased stake in Delectable Technologies the... Than its Peers value addition by www.accordfintech.com driver of growth across channels and categories invested heavily FMCG... 25-Jan-2021, ITC LTD are strong and hence it 's previous report. eg... What you can afford to lose summaries of financial data in easy to understand visual form informational. Healthy recovery saw a recovery, which was driven primarily by the value segment NSE: ITC ) %... Is regularly voted amongst the Best Heritage Hotel Brand award in 2006 voted amongst Best... Grew 10.1 % YoY to | 599 crore Furniture market to See Huge growth 2025... Vs. 10x earlier expect a recovery in the Asia money poll 2020 a firm generates. Of which Cigarettes business revenue stood at Rs to See Huge growth by.... Frequent Comparisons with ITC LTD. 207.80 -2.90 ( -1.38 % ) ebitda was down by 11 % at (... % decline to Rs29bn ) while the Adj volume growth even after lockdown.! P/E Jun-22E EPS ) 1,964 compulsorily convertible preferred shares of Rs only chain in India to have the number. 19.7 % YoY to | 149 crore ( I-direct estimate of | 366 crore reduced.
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