With rising share of FMCG biz, ITC presents a bottom-fishing opportunity

Many analysts also foresee an improvement in the cigarette business

Challenges such as a 13 per cent surge in tax under the goods and services tax (GST), intense competition from the tobacco-chewing segment and the illicit cigarette trade impacted ITC's flagship business — cigarettes — last financial year. 

As a result, its stock has been a laggard, down 16 per cent in the past year, compared to a six per cent gain in the BSE FMCG index and a 13 per cent rise in the benchmark Sensex. However, ITC's effort to scale up its non-cigarette businesses, especially fast-moving consumer goods (FMCG), is likely to provide impetus to the performance.

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