ITC To Invest Rs 800 Cr In Odisha Food & Hotel Business

Diversified group ITC has announced that it will set up an integrated consumer goods facility and a five star hotel in Odisha at an investment of Rs 800 crores. This integrated consumer goods manufacturing facility is being built on an area of 700,000 sq ft at Khordha district in Odisha, India. The firm will roll out the company’s food brands like Aashirvaad, Bingo, Sunfeast, YiPPee! from the unit, a company said in a statement.

Besides, the group has also announced that it will setup up a 110 room five star hotel in Bhubaneswar under its WelcomHotel brand.

ITC added that these investments including a state of the art integrated consumer goods facility and a five star hotel property entail an investment of nearly Rs 800 crores.

These flagship projects were unveiled today in the state Odisha by Chief Minister Naveen Patnaik in presence of the company’s Chief Operating Officer Sanjiv Puri, the statement declared. ITC's investment in the processed foods sector in Odisha, India will add significant value to the state's agricultural potential.

The company believes that food processing sector can make a multi-dimensional contribution to the state by enhancing the competitiveness of food value chain, encouraging sustainable agriculture, reducing agri-wastages as well as helping create livelihoods along the entire value chain.

ITC is recommended as one of the top 500 Shares identified by Dynamic Levels research team at the end of every quarter out of 1700 plus Shares of NSE. ITC has strong fundamentals. By strong Fundamentals we mean ITC has not made any losses in last 2 quarters, debt equity is less than 2 (not applicable for NBFC and banks) and pledge is less than 25 per cent. These top 500 Shares are safe for investment.

ITC share price closed at Rs 233.50, up by 0.41 per cent. Get the historical share price performance of ITC at ITC share price history.

ITC Relieved From the Hang-Over of GST Tax Structure

As fears of goods and service tax (GST) overhang subsided after GST council has finalized four-tier tax structure, ITC share price rose over 6 percent intraday on Friday. Earlier, there were qualms about charging the higher tax on tobacco post-GST. ITC obtains over 45 percent of its revenue from tobacco products.

The sin or demerits products like tobacco, aerated drinks, pan masala and luxury cars will be taxed at 28 percent with additional cess, the quantum of which has not been finalized. However, the government has signaled that overall tax incidence on these categories will stay broadly unchanged.

The GST Council has finalized the tax structure of 5, 12, 18 and 28 percent. Essential items will be taxed at 5 percent while white goods like TV and refrigerators may witness some tax relief. The GST panel has also permitted cess on tobacco, luxury products, and sin items. This cess will not be additional and won’t add to states or consumers load. Taxation on gold will be decided upon the revenue flexibility.

Meanwhile, at 1:23 PM, ITC share price was trading at Rs. 250.05, up by 4.06% at NSE, while the Benchmark Index Nifty traded in red with the decline of 0.33%.

Most analysts are optimistic on ITC, given sharp underperformance in past months on GST concerns. Some uncertainty will remain on the final taxation change for ITC and earnings impact could be gauged only as clarity emerges on quantum and nature of cess on sin products.

ITC has observed a strong operational recovery in the past few quarters with volumes growing 3-4 percent and earnings growing in double digits. ITC is at a big discount to other FMCG stocks due to the hang-over of GST.

Surprisingly, ITC’s cigarette revenue increased 7 percent in Q2 at Rs 8528 crore as compared to Rs 7963 crore year-on-year. ITC had said that it delivered another quarter of steady performance in spite of a challenging operating environment marked by continuing pressure on legal cigarette industry, increase in input cost and subdued demand conditions existing in the FMCG industry.

ITC posted the net profit at Rs 2500 crore in July-September quarter up 10.5 percent as compared to Rs 2262.5 crore in corresponding last financial year. During the period, its total income registered an 8 percent growth at Rs 13616 crore as against Rs 12611 crore on an annual basis.

ITC is the top 500 performing share for the quarter as recommended by Dynamic Levels from among the 1700 listed stocks. For the support and resistance levels of the stock, visit ITC share price forecast page of Dynamic Levels website.

ITC Q2 net up 10%, Cigarette revenue Growth at 7%

ITC has posted net profit at Rs 2500 cr in July-September quarter up 10.5 per cent from Rs 2262.5 cr in corresponding last fiscal. During the period, its total income reported an 8 per cent growth at Rs 13616 cr as compared to Rs 12611 cr on annual basis. Surprisingly, its cigarette revenue grew 7 per cent in Q2 at Rs 8528 cr as compared to Rs 7963 cr year-on-year.

In the July-September quarter (Q2), EBITDA grew 7.3 per cent at Rs 3630 cr against Rs 3383 cr while margins were almost flat at 26.7 per cent against 26.8 per cent (YoY). According to a media poll, the cigarette-hotel-to-FMCG major was estimated to report net profit at Rs 2673 cr with cigarette volume seen growing 3-4 per cent in Q2.

ITC Share Price Forecast:

Meanwhile, ITC share price was trading 0.03 per cent higher at Rs.238.90 on the National Stock Exchange (NSE) today. The scrip opened at Rs.239.85 from a previous closing of Rs.238.75. 

ITC is analyzed by Dynamic Levels Researchers and analysts as the top 500 performing stocks for the current quarter among the 1700 stocks which are listed on the National Stock Exchange (NSE).  ITC is fundamentally strong, financially sound and is safe for investment, as per Dynamic analysts and market experts.

ITC has a market cap of Rs. 289163.48 (Cr) while its book value stands at 27.97. The 52-week high of the stock stands at Rs. 265.90 (06-Sep-16) while the 52-week low reads at Rs. 178.76 (29-Feb-16). The life time high & low of the stock stands at Rs. 273.30 (28-Feb-15) and Rs. 4.14 (25-Jan-96), respectively.

 In order to gain information about the support and resistance levels of the scrip and also its fundamentals and financials, please a pay a quick visit to ITC share price history.

ITC to divest 100% stake in King Maker Marketing Inc

In a filing to the BSE on 10^th October 2016, ITC limited announced that it will be divesting 100 per cent of its equity stake in US-based King Maker Marketing Inc for an estimated consideration of $24 million.

The FMCG major and the US-based buyer, Premier Manufacturing Inc, have entered into an agreement to sell its shares in the subsidiary company on 8^th October, 2016. The sale is expected to be completed by 30^th November, 2016.

The corporate management committee has approved divestment of entire shareholding of the Company (204 shares of common stock with no par value) in King Maker Marketing Inc, United States, a wholly-owned subsidiary, along with the assignment of certain trademarks owned by the company, pursuant to the authority given by the Board of Directors of the company.

The major player in the FMCG segment has business a interests in cigarettes, hotels, paperboards and specialty papers, packaging, agri-business, packaged foods and confectionery, information technology, branded apparel, personal care, stationery, safety matches as well as other FMCG products.

Meanwhile ITC share price has risen by 0.86 per cent and is currently trading at Rs 241.00 apiece on NSE. The intraday high of the share is Rs 242.60 and the intraday low is Rs 240.05.

Important Fundamentals:

• Sector- FMCG
• Face Value (Rs.)- 1
• Average Daily Movement [ADM]- 5.12
• Average Volume [20 days]– 83,73,710
• 1 Month Return (%)- (-9.00)
• Consolidated FY 15-16 PE Ratio - 29.20
• Consolidated Trailing PE Ratio - 0
• Standalone FY 15-16 PE Ratio - 29.40
• Standalone Trailing PE Ratio - 29.41
• Book Value - 27.97
• Market Cap - Rs 289405.72 (Cr)
• % of Promoter holding pledged – 0

ITC Limited is one of the Top 500 shares recommended by the research and analysis team of Dynamic Levels. Get the historical share price performance of the company at ITC share price history.