CMP Rs187, Target Rs216, Upside 15.9%
± Q4 net profit matches our expectations of Rs12.8bn, up ~25% yoy. Revenues marginally below expectations, register ~16% yoy growth at Rs58.4bn mainly due to slower growth in cigarettes and agri segment
± Cigarette volumes declined by 2% yoy due to price hikes implemented in January. We expect ITC to report strong volume growth in Q1 FY12 on a low base
± OPM remained stable at 30.7% despite higher input and overhead cost. We expect the company to witness a 15.2% CAGR in revenues and 18.3% in net profit over FY11-13. Maintain BUY
