We have a BUY rating with a TP of Rs 358, based on 32x Dec-19EPS. We see risk reward favoring ITC at current price. At CMP, the implied EPS CAGR (FY17-FY20E) at 30x FY20 P/E (Ex-ITC Sector P/E is at 37x FY20) is ~1% and reflecting higher discounting factored in the stock. ITCs last 5 year EPS CAGR (despite punitive taxes) is 10%. Even during the most challenging quarter i.e. 2QFY18, ITC posted 5.6% growth in APAT. Hence, we believe the stock has immense potential to perform well in the coming years. We expect Revenue/EBITDA/APAT CAGR of 9/10/10% respectively over FY17-20E.