Stock Analysis of ITC Ltd - Recent Acquisitions, Business Performance & Chances of crossing 350 in 2021

Well, It might even touch 400 by 2021 the manner in which ITC has broadened.

ITC Limited is a Kolkata (West Bengal) located Indian multinational conglomerate company which was established in 1910 as the Imperial Tobacco Company of India Limited. After six decades, the company was renamed as the India Tobacco Company Limited in 1970 and later to I.T.C. Limited in 1974. The company currently stands renamed to ITC Limited, where 'ITC' today is not, at this point an abbreviation or an initialized structure. ITC has an excellent presence across various industries like Cigarettes, FMCG, Hotels, Packaging, Paperboards and Specialty Papers, and Agribusiness.

Recent activities regarding Acquisition

On 27th July 2020, ITC gained 100% of the equity share capital of Sunrise Foods in a 2150 crore deal.

And for sure, Sunrise and its two subsidiary companies, Sunrise Sheetgrah Private Ltd and Hobbits International Foods Pvt Ltd, have become completely-owned subsidiaries of ITC, it added.

Sunrise Foods Private Limited (SFPL), an Indian company primarily engaged occupied with spices under the trademark 'Sunrise', subject to fulfillment of different terms and conditions as determined in the SPA.

Sunrise is clearly a market leader in eastern India in the quickly developing Spices category with a rich heritage and brand legacy of more than 70 years. Throughout the long term, the brand has built a loyal consumer franchise, secured on a separated product portfolio tailored to regional tastes and preferences, both in the essential and blended zest sections.

Upon consummation of the transaction, the proposed procurement will enlarge the Company's product portfolio and will also align with the Company's goal to significantly scale up its Spices business and expand its footprint the nation over.

The profound consumer associates of SFPL in the center markets, along with synergies emerging out of the sourcing and supply chain capabilities of ITC's Agri-Business and its pan-India distribution network, will offer huge benefit creation open doors for your Company.

The proposed transaction is also in line with ITC's strategy of upgrading the competitiveness of Agri value chains in India whilst making a meaningful commitment to improving farmer incomes.

During the year, ITC also launched more than 60 new products some of which are demonstrated as follows:

• Competitive Value chains built by ITC to profit Farmers

• Competitive Value chains built by ITC to profit Farmers

• Increased by unique rural digital infrastructure.

• Known as e-Choupal model

• 6100 installations covering more than 35000 villages and serving more than 40 lakh farmers

• 'Khwahishon ki Azadi' campaign

Business Performance

FMCG – Despite the various challenges have prevailed during the year and the intense slowdown following the flare-up of the pandemic, ITC's FMCG-Others businesses recorded Segment Revenue of Rs 12844.23 crores speaking to an expansion of 5% over the earlier year (on a comparable premise, excluding the Lifestyle Retailing Business).

Branded Packaged Food – With consumer spends of nearly Rs 15000 crores moored on vigorous brands that arrive at one out of each two Indian households, the Company continued its market remaining as the third largest food company in the country (publicly listed). During the year, the Company's brands have been successful in entering an additional 10.5 million households (source: HHP, Kantar World Panel, MAT Dec'19).

Fabelle's chocolates keep on getting an excellent response from knowing consumers setting new benchmarks in the luxury and FMCG chocolate portions.

In the Instant Noodles category, YiPPee! noodles continued its overall market remaining as a solid & 2nd most competitive brand in the noodles sector.

In the Biscuits category, Dark Fantasy Choco Fills supported its high development trajectory driven by superior product attributes, centered communication, proficient distribution, and consumer actuation. The recently launched Bounce Cake variants keep on accepting an excellent response from consumers and are currently available in all objective markets.

In the market of Spices, during the year, your Company expanded its geographical footprint to 17 states and recorded healthy volume development. The business offers critical open door for relocation from unbranded to branded spices, the salience of which is low.

Expanding consumer footing for 'Bingo!' Potato Chips and Tedhe Medhe kept on driving development in the Snacks Business.

Sunbean' gourmet coffee, which is available across all ITC Hotels and select online business platforms, keeps on getting an excellent response from knowing consumers.

In the Dairy and Beverages Business, the 'B Natural' scope of juices moored on the recommendation of '100% Indian Fruit, 0% concentrate' with the additional 'goodness of fiber', keeps on extending consumer interface by giving a more nutritive and 'natural' tasting experience.

The 'Aashirvaad Svasti' new dairy portfolio including pouch milk, pouch curd, and paneer, picked up solid consumer foothold on the rear of top notch standards and superior taste profile, in Bihar and West Bengal where the portfolio is currently available.

Company's Personal Care Products Business consolidated its market remaining across classes driven by supported spotlight on innovation, portfolio premiumization, and expansion of distribution reach, both in traditional trade just as internet business.

In the Personal Wash and Hygiene category, the Business enlarged the 'Fiama' bodywash range with the launch of 'Fiama' Scents in two energizing variants, in this manner fortifying the brand's 'temperament upliftment' value suggestion.

In the Fragrances category, 'Engage' consolidated its situation as the second-largest brand in the category. Throughout the long term, the brand has been built on disruptive innovations secured on 'affordability' and 'comfort' in this manner driving category expansion. During the year, the Business presented 'Engage L'amante', a world-class scope of masstige perfumes, and got empowering response from the consumers.

The Education and Stationery Products industry was adversely affected during the year because of sluggish demand and tight liquidity conditions. The circumstance was exacerbated by the beginning of the COVID-19 pandemic towards the close of the year which led to the delay of the academic meeting the nation over. This also concurred with the pinnacle season for sales.

The Agarbatti business saw a stamped deceleration in development rates during the year in line with the slowdown in utilization in the more extensive economy. The pattern of premiumization that had assembled pace as of late, saw some control during the year with affordability contemplations in the midst of the economic slowdown resulting more sought after for 'value for money' packs.

2019-20 ended up being a mixed bag for the homegrown Hospitality industry. While General Elections and sluggish economic movement burdened the occupancy and room rates during the main half of the year, the subsequent half saw a get in development momentum driven by an expansion in inbound and homegrown tourism, gatherings and shows, and retail fragments. Decrease in GST rates declared in September 2019 also added to the recovery.

Be that as it may, the revival in demand was brief with the beginning of the COVID-19 pandemic, the effect of which was felt as early as February 2020, severely disrupting activities.

In the wake of seeing a vigorous 2018-19 in terms of solid end-client demand and higher realizations on the rear of higher pulp costs, the Paper and Paperboard industry remained relatively quieted in 2019-20.

The general economic slowdown, sharp fall in rural demand, and tight liquidity conditions affected end-client demand across sections. Pulp costs which began amending towards the finish of 2018-19, declined sharply during the year because of constriction in global demand and higher inventory levels.

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New Delivery Models to Ensure Availability

• Innovative partnerships with Dominos, Swiggy, Zomato, Dunzo, Amway, and so forth

• ITC Store on Wheels contacting consumers' homes

• ITC's FMCG products are available in 6 million retail outlets

• ITC's Distribution value chain gives critical sustainable livelihoods in India

In the wake of seeing this present, It's quite possible that ITC Ltd. may go 300+ in closer future.