ITC gains on FMCG growth, branded food segment may help firm next

Company's FMCG business to increase from 25 per cent of revenues in FY20 to 30 per cent in FY23, say analysts

The ITC stock has gained more than 9 per cent over the last four trading sessions on expectations of increased contribution from its expanding fast moving consumer goods (FMCG) portfolio, a stable tax regime, and attractive valuations.

The immediate trigger for the stock, which has underperformed its FMCG peers, is its foray into new categories. 

In line with its goal of increasing the share of the non-cigarette FMCG business, the company recently expanded into cakes and milkshakes. It also strengthened its chocolates and staples portfolio. 

Analysts at Systematix Institutional Research expect the share of the FMCG business to increase from 25 per cent