ITC Share Price: Stock Rises for 5th Straight Day, CLSA Sets ₹390 Target

Shares of ITC Limited continued their upward momentum on November 4, rising around 3% and emerging as the top gainer on the Nifty 50 index during the trading session. The rally followed the company's Q2 FY27 results, announced on November 2, which highlighted strong growth in its non-cigarette FMCG business despite continued pressure on cigarette profitability.

According to the supplied market data, ITC shares have gained more than 8% over five consecutive sessions. Investors are assessing the company's mixed quarterly performance, while brokerage firms have offered differing views on its outlook. CLSA has retained a target price of ₹390 per share, whereas JPMorgan has maintained its target at ₹310.

ITC Shares Extend Rally After Q2 FY27 Results

ITC shares continued to attract attention after the company's September-quarter earnings announcement. The stock gained nearly 3% on November 3 and extended its advance in the following session.

The company's performance across business segments was mixed. While the cigarette business faced a significant decline in profitability, non-cigarette FMCG, agriculture and paper-related businesses delivered growth.

The contrasting performance has become a key factor in brokerage assessments of ITC's prospects.

CLSA Maintains ₹390 Target Price on ITC Shares

CLSA has maintained a positive view on ITC, with a target price of ₹390 per share. The brokerage highlighted the strength of the company's non-cigarette businesses, which helped offset some of the pressure from the cigarette segment.

ITC's non-cigarette FMCG business reported 15.7% year-on-year revenue growth in Q2 FY27 on a standalone segment basis, reaching ₹6,967 crore. Segment profit before interest and tax increased 27.8% to approximately ₹558 crore.

CLSA also noted growth in ITC's paperboards and agri businesses, which contributed to the company's diversified performance during the quarter.

JPMorgan Keeps ITC Target at ₹310

JPMorgan has maintained a Neutral rating on ITC shares with a target price of ₹310.

The brokerage highlighted the continuing pressure on the cigarette business, where segment profit before interest and tax declined approximately 27% year-on-year. Delayed price increases and an estimated 7–8% decline in cigarette volumes were among the factors behind the weakness.

However, JPMorgan expects changes in ITC's product portfolio and phased price increases to gradually improve cigarette profitability.

Further price increases, particularly in the Regular Size Filter Tipped (RSFT) category, could help stabilise cigarette segment earnings by the fourth quarter, according to the brokerage's assessment.

ITC Q2 FY27 Results: Cigarette Business Under Pressure, FMCG Growth Strong

ITC reported a 20.1% year-on-year decline in standalone net profit to ₹4,137 crore for Q2 FY27. The company's cigarette segment continued to face challenges following higher taxation and pressure on volumes.

Cigarette segment profit before interest and tax fell 27.2% to ₹3,813 crore. At the same time, the non-cigarette FMCG business recorded strong growth, with revenue increasing 15.7% to ₹6,967 crore and segment profit rising 27.8%.

The paperboards, paper and packaging business also showed improvement, while the agri business continued to contribute to the company's diversified revenue base.

The contrasting performance of ITC's business segments has resulted in different brokerage assessments. While CLSA's ₹390 target reflects confidence in the company's non-cigarette businesses and longer-term prospects, JPMorgan's ₹310 target takes a more cautious view of the cigarette segment's earnings recovery.

Investors will continue to monitor cigarette volume trends, the impact of price increases, FMCG growth, and profitability across ITC's businesses in the coming quarters.