Goldman Sachs has set a target price of Rs 500 per share for ITC Ltd. following the company's recent demerger, citing strong potential for profitability growth and the expansion of its consumer business. The brokerage firm highlighted a steady recovery in the cigarette business, predicting healthy earnings growth from fiscal 2023-25. The target represents an upside of 13% from the stock's previous close.

ITC shares saw a nearly 6% adjustment in a special pre-open session on the ex-date of the demerger, settling at Rs 455 per share on both the BSE and the NSE. Goldman Sachs remains optimistic about ITC’s future, maintaining a ‘buy’ rating on the stock. The report forecasts a 12% revenue compound annual growth rate (CAGR) for ITC’s FMCG segment from fiscal 2022 to 2027, with an expected increase in operating profit margins to 12% by fiscal 2027 from 9% in FY 2022.

Despite the positive outlook, Goldman Sachs cautioned about risks such as regulatory restrictions on the cigarette industry, competition from alternative cigarette products, and potentially lower-than-expected margins in the FMCG sector.

As of the latest trading data, ITC’s stock saw a modest rise of 0.58% during the day, reaching Rs 443.6 apiece on the NSE. Over the last 12 months, the stock has grown by 0.2%. Analysts remain bullish, with 34 out of 40 analysts rating ITC as a 'buy', and a consensus target price of Rs 540.11, reflecting a potential upside of 12.1%.