Budget 2024: ITC to benefit from no changes in tobacco taxes, says Jefferies; check out what brokerages recommend
Global brokerages have turned bullish on cigarette-to-hotel conglomerate ITC. The move came a day after the Indian Finance Minister Nirmala Sitharaman presented the union budget. Here is what brokerages recommend on ITC. (DISCLAIMER: The views and investment tips expressed by investment experts on zeebiz.com are their own and not those of the website or its management. zeebiz.com advises users to check with certified experts before taking any investment decisions.)
Why are brokerages upbeat on ITC after the union budget presentation?
Why are brokerages upbeat on ITC after the union budget presentation?
As per Jefferies, no news is great news and ITC has come out as a clear winner with the government leaving tobacco taxes unchanged. The goods and services tax (GST) taxes are also likely to stay stable until March 26 when the center settles state dues.
Further, the demand outlook for the staple sector is improving and this should benefit key businesses of ITC. Next year's budget for Feb-25 will gain prominence but a modest price hike this year will set a base for next year.
Jefferies
Jefferies
By upgrading to a 'buy' rating, the brokerage raised the target to Rs 585 from Rs 435.
JP Morgan
JP Morgan
The brokerage maintained an 'overweight' rating and raised the target of Rs 535 from Rs 490.
Goldman Sachs
Goldman Sachs
By maintaining a 'buy' rating, Goldman Sachs raised the target to Rs 515 from Rs 480.
Morgan Stanley
Morgan Stanley
The brokerage maintained an 'overweight' rating and gave the target of Rs 506.
Macquarie
Macquarie
The brokerage maintained 'outperform' on Macquarie and gave the target of Rs 560.