Goldman Sachs has maintained a Buy rating on ITC, emphasizing the steady recovery in its cigarette business and significant margin expansion in FMCG. Key highlights include:
- Cigarette business expected to deliver healthy earnings growth over FY23-25E.
- FMCG EBITDA margin likely to expand to ~12% by FY27E from ~9% in FY22.
- Stable tax regime with 5-7% annual cigarette tax hikes supports profitability.
- Improving profitability and scale of the FMCG segment remain positive factors.
The current market price (CMP) of ITC is ₹441.10, with a target price of ₹500.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Readers are advised to do their own research or consult a financial expert before making any investment decisions.
