As consumer companies continue to struggle in an uncertain operating environment, ITC is better placed than peers with accelerated earnings growth over the past two years, especially in FY23, and strong earnings visibility compared to peers into FY24 as well, said Motilal Oswal in a research note. The research and broking house believes that there is room for upside for ITC shares from current levels. TRENDING STORIES See All Premium G20 Flower Festival inaugurated in Delhi's Connaught Pl . . . Premium From Air to Ocean: Scientist discover way to suck carbo . . . Premium Silicon Valley Bank not a stakeholder in Paytm, Vijay S . . . Premium Ronnie Screwvala keen to own team in proposed Women's P . . . The brokerage has maintained a buy rating on ITC with a target price of ₹ 450 as a result of better earnings, visibility over peers in the next few quarters, inexpensive valuations; and attractive dividend yield. “The challenges for ITC led by an extremely punitive tax regime of the past, Covid-related disruptions and commodity cost inflation now seems to be receding," it said. ITC has demonstrated a healthy 23 per cent EPS growth in FY23 and the brokerage expects a likely EPS CAGR of 15 per cent over the next two years as well. ITC's earnings outlook is better than other large cap staples players both on a two-year CAGR ending FY23 as well as FY24 earnings growth expectations, Motilal Oswal said. “At a time when uncertainty looms over the industry, led by high inflation, unpredictable monsoons, continued weak rural sales, and delay in commodity costs decline, ITC’s earnings performance in the last couple of years and in FY24 shines like a beacon," the note said. MINT PREMIUM See All Premium After years in decline, is the gender pay gap opening up? Premium Silicon Valley Bank’s foibles don’t threaten India’s fi . . . Premium India needs a global security forum it can lead Premium America and China are preparing for a war over Taiwan ITC's dividend yield is healthy at 3. 5-4 per cent despite the stock price appreciations and valuations remain inexpensive at 22. 2 times FY24 EPS and less than 20 times FY25 EPS, it said. Key factors behind positive outlook: - Healthy cigarette volume growth in the recent quarters is likely to sustain in the near term, leading to the best three-year and four-year average volume growth for over a decade. - With no high indirect tax increase in the FY24 budget, the operating environment is far more conducive compared to the punitive regime of the preceding years. - Over the past five to six quarters, the company has sparingly used its pricing lever and can continue to take leverage on the same going forward. - Unlike staples peers, the company has displayed resilient operating performance of its ‘Other FMCG’ business in the past few quarters. If wheat costs decline sharply post the Rabi harvest, performance on the segmental margin front can be even better in FY24. - Hotels business prospects are likely to be buoyant going forward. ITC shares are currently near their 52-week high level of ₹ 394 apiece on the BSE. The stock is up 64. 29 per cent in a year's period. The stock closed 0. 04 per cent higher at ₹ 388. 05 per share on the BSE on Friday. ABOUT THE AUTHOR Meghna Sen Meghna Sen is a deputy chief content producer at Livemint where she tracks companies, markets, news. She has 5+ years of experience with online and print publications. Email: meghna. sen@htdigital. in Read more from this author Know your inner investor Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach. Take the test Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. More Less Topics ITC OPEN IN APP.