ITC gets buy from Nomura

The dairy sector in India is currently worth $ 10.8 billion and expected to grow at a 15 per cent CAGR over the next five years ( as per Euromonitor estimates). According to reports, ITC has been looking to enter the segment, and with a large unorganised and under- penetrated market to tap, the brokerage believes that the dairy business could be a very attractive opportunity for the compa

ny in the medium term. The company could generate more than 1,800 crore in profits by 2018 from the FMCG business. The dairy business, according to the brokerage, could add to

that number and presents another lever for the company to scale up its FMCG business. ITC trades at a significant discount to the sector average at current levels. With uncertainty

on the tobacco tax increases now out of the way for another year, it believes that the stock would see a period of steady

returns in the next year. It expects the company to deliver another year of solid earnings

growth in FY15. Broking firm: Nomura

Rating: Buy Closing price: 355.15