ITC has touched an intra day high of Rs 163.45 and an intra day low of Rs 152. Currently, the share is quoting at Rs 163.45, up Rs 11.20, or 7.36%. It is trading with volumes of 2,409,804 shares, compared to its 5-day average of 915,047 shares, an increase of 163.35%. Yesterday the share closed down 0.65% or Rs 1.00 at Rs 152.25.

Credit Suisse has initiated coverage on the stock with price target of Rs 188. Credit Suisse says that ITC has underperformed the markets by 41% in last 12 months. ITC is likely to surprise positively in cigarette profit growth. Also another reputed brokerage CLSA has upped ITC price target to Rs 184 and upgraded it to Buy from Underperform.

Our 12-m target price of Rs184/sh (earlier Rs150) is based on sum of parts. The key reason for the target price upgrade is the 6% increase in earnings and upward revision in our target cigarette business PE to 17x, due to more confidence on cigarette volume trend. Cigarette business accounts for 70% of sum of parts. With the target price offering 20% upside we upgrade the stock to BUY, says CLSA.

ITC also plans to enter home and personal care segment, besides scaling up its FMCG business in an apparent move to reduce dependence on the cigarette business, which it forecasts to face stiff challenges in the future, news reports had indicated.

Without setting any time-frame for venturing into the home and personal care segments, the company plans to sell such products through a network of 6,400 web kiosks and 18 supermarkets. The company would aggressively scale up its activities in the FMCG sector, in which it aims to be a leading player. Bullish on the FMCG sector, the company said the key demand drivers would be the rising disposable incomes, relatively low levels of per capita consumption, growing urbanisation, favourable demographic profile and the increased penetration of organised retail.