Goldman Sachs Maintains 'Buy' Rating for ITC, Target Price Unchanged at Rs 480

"Goldman Sachs, an international investment banking firm, has upheld its ‘buy’ recommendation for ITC, anticipating a recovery in cigarette volumes in the coming quarters. The target price remains steady at Rs 480 per share. This suggests an approximate upside of 17.6 percent from the closing price on February 28.

ITC shares have faced a decline of about 13 percent this year. Goldman Sachs attributes this downturn to weak short-term earnings and the impact of the proposed British American Tobacco (BAT) stake sale. BAT aims to reduce its stake in ITC from 29.03 percent to 25 percent, planning to sell 4 percent, equivalent to approximately 50 crore shares valued at Rs 20,000 crore at the current market price. The presence of such a substantial block of shares allows potential investors seeking a large quantity to acquire them without resorting to the open market, thereby avoiding the risk of inflating the price."