Emkay keeps 'Add' on ITC, Rs 310 target as cigarette volumes seen falling high single-digits
Post the February 2026 tax hike, Emkay expects ITC's cigarette volumes to drop by high single-digits, but sees FMCG-Others (Aashirvaad, Sunfeast, Bingo!) growing ~10% YoY on premiumization and 100 new product launches. EBITDA margin pegged at 10%, cash generation of Rs 15,000 crore in FY26, valued at 18x forward EPS.
Emkay maintains 'Add' on ITC with Rs 310 target, expecting high single-digit cigarette volume decline after February 2026 tax hike, while FMCG-Others (Aashirvaad, Sunfeast, Bingo!) grows 10% with premiumization and new launches.