Buy ITC; target of Rs 347: Sharekhan

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26 Aug, 2025 12:21

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Sharekhan's research report on ITC

ITC has undertaken price hike of 6-15% in some of its lower-end cigarette brands (contributing ~20% to cigarette sales volume). The average price hike (with no price increase in key brands) stood at 2%. The recent price hike will have initial reaction on sales, with sales volume expected to moderate in these brands for a short span. However, we believe this price increase will get absorbed in the market as the same was taken after a long gap in the domestic market. We have tweaked our earnings estimates for FY2020E/FY2021E by 1% each to factor in little lower-than-earlier expected volume growth. Discounted valuations of 25x its FY2021E earnings make it one of the important picks in the FMCG space.

Outlook

We retain our Buy with an unchanged price target of Rs. 347.

For all recommendations report, click here

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