“Nikhil Ranka is cautious on ITC despite its recent correction, citing concerns over proposed taxation changes. He believes a 28-30% portfolio-level price hike, needed to offset excise duty, will lead to an 8-10% volume decline in the first year and flat volumes in the second, resulting in a flat EPS trajectory around ₹17-17.5. This lack of earnings growth will prevent significant stock re-rating, limiting moves to around 5% unless tax relief is provided.”