ITC shares have come under sharp selling pressure, falling nearly 14 percent over the past two trading sessions, rattling investor sentiment. The decline follows concerns around recent regulatory changes and near-term earnings uncertainty, which have weighed heavily on cigarette and FMCG stocks.
However, the recent correction stands in contrast to the long-term optimism expressed by Rajiv Jain, founder and CIO of GQG Partners, who had described ITC as a “great growth story” just two years ago.
Speaking in January 2024, Jain had highlighted ITC’s “incredibly attractive valuation”, pointing out that the stock was trading at a discount despite strong fundamentals. He had also noted that the company was well positioned to deliver lower double-digit earnings growth, supported by its diversified business model spanning cigarettes, FMCG, hotels, paperboards, and agri-business.
Jain had further underlined ITC’s strong cash flows, improving return ratios, and steady market share gains in non-cigarette FMCG segments as key positives. According to him, these factors provided downside protection while offering long-term compounding potential.
While near-term headwinds have triggered the recent sell-off, long-term investors continue to track ITC closely, weighing regulatory risks against the company’s structural strengths and valuation comfort highlighted by global investors like GQG Partners.
