Here's why CLSA is bullish on ITC; sees the stock Rs 265 levels in a year

Given the road ahead for the next few years, CLSA finds the stock valuations attractive at the current levels with a record-high PE discount to the FMCG average (57 per cent) and a 6 per cent dividend

The elephant may just have been prepping for a dance. ITC, the fast moving consumer goods (FMCG) major, whose stock has relatively been comatose even as peers and overall markets delivered healthy returns, may be at an inflection point due to its FMCG (non-cigarette business), suggests CLSA.

In a report on Tuesday, Chirag Shah and Nitin Gupta of CLSA said they believe ITC’s FMCG business is firmly on path for a profitable scale-up and expect this vertical to deliver over 26 per cent compounded annual growth (CAGR) in earnings before interest, taxes, depreciation and amortisation (Ebitda) over FY21-24 on the