At 27x FY20E EPS, ITC trades at an unfair discount of ~30% to the sector. We roll forward to Sep-20E EPS, valuing at 32x with TP of Rs 382 (earlier Rs 367). Maintain BUY. Time and time again the concern on ITC has been around tax hikes and its impact on the cigarette business. All challenges aside, the company has been able to deliver ~10% cigarette revenue CAGR in the last 10 years (in comparison to FMCG sector growing by 13%) despite muted volume growth. This reflects ITCs pricing power and leadership position.