ITC Share Price Target 2025: Brokerage Gives 'Add' Rating, Analyses Stock Fundamentals

Emkay Global has reaffirmed its ‘ADD’ rating on ITC Ltd., setting a target price of Rs 475 for March 2026, indicating a 13% upside potential from current levels. The brokerage believes that recent headwinds are largely behind, and improving fundamentals could support a re-rating of the stock.

“We maintain a positive stance on ITC with ADD and SOTP-based Mar-26 TP of Rs475, as we believe headwinds are in the base. We expect performance to gradually improve; for cigarettes, we expect ITC to enhance execution and sustain mid-single-digit volume growth with accelerated growth in the industry,” Emkay stated in its report.

Also Read: ITC Share Price Falls Over 4% After BAT Stake Sale—Should You Buy The Dip Or Stay Away? | Republic World

It is to be mentioned that SOTP stands for Sum of the Parts, a valuation method used to determine the total value of a company by breaking it down into its individual business segments and valuing them separately.

Emkay’s SOTP-based valuation also factors in an additional 4% dividend yield, making the stock attractive following a 20% correction from its peak in September 2024. The correction was attributed to weak topline performance, pressure on margins, and the overhang from British American Tobacco’s stake dilution.

“With stake sale overhang contained in the near term, we expect the stock price to react to the expected improvement in financials.” the report stated.

The brokerage expects double-digit earnings growth in FY27, supported by sustained mid-single-digit volume growth in the cigarette segment, easing input costs like leaf tobacco, and a recovery in its FMCG and paper divisions. Emkay estimates overall sales and earnings CAGR at 12% between FY25 and FY28.

ITC’s non-cigarette businesses are also forecast to perform well, with the FMCG and paper segments expected to clock 13% sales and 23% EBIT CAGR over the same period. Strategic acquisitions such as 24 Mantra and Century Pulp and Paper are set to be integrated into the financials from FY26, bolstering growth.

While the agribusiness shift to value-added products may offer minimal margin expansion, it is expected to support topline performance.

With improving visibility on earnings and margin recovery, Emkay’s reaffirmation of the Rs 475 target suggests renewed investor confidence in ITC’s diversified growth strategy.