ITC gains even as Street is divided on tobacco biz dependence, other issues

Brokerage upgrades led to a six per cent rise in the stock since the start of the month

Shares of FMCG major ITC surged nearly 3 per cent intraday on Wednesday as analysts maintained a positive stance on the company on the back of its robust growth prospects and efforts on the ESG (environmental, social, corporate governance) front. 

ITC's diversified portfolio of multiple strong brands is poised to continue its double-digit revenue growth trend over the next three years, according to global brokerage firm Credit Suisse. “Profitability has improved significantly, and the company's Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin is likely around 9 per cent in FY21. We see a path to ITC's FMCG Ebitda margin