Analyst Sheela Rathi of Morgan Stanley maintained a Buy rating on ITC Limited, with a price target of INR469.00.
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Sheela Rathi has given her Buy rating due to a combination of factors that suggest a positive outlook for ITC Limited. The company is anticipated to experience growth in its cigarette segment, with expected volume and revenue increases of approximately 5% and 7%, respectively, in the second quarter. Additionally, the FMCG sector is projected to see a 3% year-over-year revenue growth with an EBIT margin improvement to 7%.
Rathi also notes the absence of tax-related uncertainties for ITC until February 2026, which could contribute to a stable business environment. Despite the stock’s 17% decline year-to-date, there is an expectation of recovery driven by growth across all business segments. The analyst estimates a high probability of over 80% for this positive scenario, supporting the Buy recommendation.
In another report released on September 25, HSBC also maintained a Buy rating on the stock with a INR510.00 price target.
ITC’s price has also changed slightly for the past six months – from INR406.650 to INR405.650, which is a -0.25% drop .