HSBC maintains buy on largecap FMCG major ITC; check target price

FMCG major ITC is in focus in Thursday's session (October 3) as the global brokerage HSBC has continued with its 'buy' stance on the stock. The brokerage has also raised the target to Rs 580 from the earlier target of Rs 480, implying gains of 12 per cent from the previous close.

The brokerage held that​ all four factors that shape our investment thesis favourably align, enhancing risk/reward appeal for the FMCG stock. The brokerage held that the stock of ITC trades at a wide discount to FMCG peers, stable tax regime for cigarettes, & formidable FMCG-Others biz contribute to attractiveness even as the entire market environment remains volatile.

Downside risks include share price sensitivity to excessive tax shocks, worse-than-expected cigarette volume growth, & slowness or market share loss in FMCG-Others.

Add Zee Business as a Preferred Source

The company on October in a filing informed that its wholly owned subsidiary has acquired 100 per cent of the share capital of Blazeclan Technologies. Consequently, Blazeclan and its following subsidiaries have become step-down wholly owned subsidiaries of the Company with effect from 1st October, 2024.

ITC share price

ITC shares in the last one year has gained over 12 per cent. The stock amid relentless market gains made its fresh 52-week high last week.