ITC jumps over 5%, may log biggest single-day gain in 5 yrs; Godfrey up 12%

G Chokkalingam of Equinomics Research believes that a pullback in ITC was overdue, as the sell-off was way beyond his expectations. The analyst sees fair value for ITC in the range of ₹375 - ₹380 leve

ITC stock surged 5.6 per cent to an intra-day high of ₹327.70 on the NSE backed by heavy volume in Friday's intra-day trade.  In the process, the stock is seen attempting to register its biggest single-day gain in five years. The stock had gained 6.1 per cent on February 4, 2021 - its biggest single-day gain compared to todays, shows BSE historical data.  At 12:45 PM, ITC traded with a gain of 5 per cent ₹325.40. The counter has seen a near 3x jump in trading volume, with over 45 million equity shares changing hands on the NSE and the BSE thus far on Friday. In comparison, the Sensex and the Nifty were down 0.2 per cent and 0.3 per cent, respectively. The Nifty FMCG index, however, was up 1.7 per cent in Friday's trade.  With today's gain, ITC stock has turned positive for the month (February), up nearly 2 per cent. The stock had turned ex-dividend for ₹6.50 per share on February 4, 2026.  In the preceding month, January the stock crashed by 20 per cent after the government notified a new tax structure (levies in 20 - 55 per cent range) for tobacco and pan masala products, and raised the GST rate on cigarettes from 28 per cent to 40 per cent. The new taxes were to come into effect from February 1, 2026.   

ITC stock undervalued, says analyst

  G Chokkalingam, Founder & MD of Equinomics Research says that a pullback in ITC stock was overdue, as the stock was beaten down beyond what it deserved. The analyst believes that a fair valuation for ITC stock should be in the range of ₹375 - ₹380.  "The FMCG business can be valued in-line with Godrej Consumer; consider 15-17 P/E for the reduced cigarette business, paper, agri and other can be value to around 14-15 P/E, and the IT business - as per the industry benchmark can be valued at 2.5x annual sales. This works into a valuation of around ₹375 - ₹380," explains Chokkalingam.  The analyst further adds, that any dip in cigarette volume owing to higher prices tends to fade over a 6-12 month period. 

Godfrey Phillips stock zooms 12%

  Another major listed player in the tobacco industry - Godfrey Phillips share price zoomed over 12 per cent to ₹2,224. The stock now traded with a gain of over 11 per cent at ₹2,206, and the counter saw trades of around 3.5 million shares on the NSE.  Shares of Godfrey Phillips had tanked by 26.3 per cent in the month of January following the tax hike on tobacco products, mainly cigarettes. The stock has crashed as much as 48 per cent from its record high of ₹3,923 hit in September 2025.  With today's gain both ITC and Godfrey Phillips stocks were seen trading above the respective short-term 20-day moving average (20-DMA) for the first time in more than a month. Technical chart shows, ITC 20-DMA stands at ₹321.50, and Godfrey Phillips at ₹2,079.   

ITC, Godfrey Phillips Q3 earnings

  On the earnings front, ITC reported a flat growth in Q3FY26 consolidated net profit at ₹5,108 crore when compared with ₹5,013 crore in Q3FY25. Consolidated revenue grew by 6.7 per cent year-on-year (YoY) to ₹21,706 crore.  The net revenue was partly impacted due to a one-time cost of ₹354.58 crore owing to provision for New Labour Codes. The company's earnings before interest tax, depreciation and amortization increased by 8.2 per cent to ₹6,882 crore.  Meanwhile, Godfrey Phillips posted an 8.7 per cent YoY growth in consolidated net profit at ₹343.30 crore; backed by 15.7 per cent jump in revenue to ₹2,189.93 crore. EBITDA was up 5.3 per cent at ₹380 crore.    Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.