Shrikant Chouhan of Kotak Securities has upgraded ITC to 'Buy' from 'REDUCE' with a fair value of ₹365, up from the earlier ₹330. According to reports from Business Standard, the stock is currently trading at ₹288 with resistance levels at ₹292-₹298 and support at ₹284-₹280. The upgrade is based on expectations that EBIT headwinds from cigarette tax hikes will moderate through FY27E, supported by calibrated pricing actions and consumer migration to EBIT-neutral alternatives.
NBCC (India) Ltd has been assigned an 'Add' rating with a fair value of ₹115, as reported by Business Standard. The Navratna PSU company maintains a robust order backlog of over ₹1.13 lakh crore on standalone basis and ₹1.3 lakh crore on consolidated basis, providing strong revenue visibility for the next 3-5 years. The company is targeting to increase its order backlog to ₹2 lakh crore by end of FY27 through redevelopment projects and government infrastructure assignments.
According to Kotak Securities analysis reported by Business Standard, early trade trends show cigarette portfolio volume impact has been relatively contained at 5-10% decline, while EBIT impact has been significant at ~30% decline due to partial tax absorption and adverse mix shifts. The company expects to achieve EBIT-per-stick neutrality in Q4FY27E versus pre-tax hike levels, with adjusted cigarette EBIT decline moderating to ~7% in Q4 from ~32% in Q1. Management is targeting ₹14-15k crore revenue in FY27 with further growth to ₹21-22k crore in FY28.
As reported by Business Standard, NBCC continues to benefit from its strong execution capabilities in redevelopment projects, having delivered over 32,550 homes in the Supreme Court-mandated Amrapali project. The company is targeting ₹14-15k crore revenue in FY27 with EBITDA margin of ~6%, expected to grow further to ₹21-22k crore in FY28. The resolution of Ghitorni land dispute in South Delhi unlocks 21.23 acres of prime land with estimated revenue potential of ₹8,500 crore.
