Cigarette volume is not only better as compared to its FMCG business but also as compared to several other FMCG companies. If ITC sustains mid single digit volume growth in cigarette and FMCG business sees recovery in FY26, the brokerage expects valuation re-rating.
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Motilal Oswal Report
ITC Ltd.'s core business of cigarettes has shown steady performance. With stable taxes on cigarettes, we anticipate sustainable growth in this business.
While the FMCG sector is seeing moderation due to the rising commodity prices, ITC is enjoying industry-leading growth over peers due to its category presence (large unorganized mix, under-penetrated, etc.).
We reiterate our Buy rating on ITC with our SOTP-based target price of Rs 525 (implied 30x Mar'27E P/E).
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