ITC remains our top pick in the large cap consumer space, as its growth trajectory is rising at a time when the ask rate remains low (unlike its peers), given its steep valuation discount vs. the sector (~40%). We expect the valuation gap to narrow as growth converges with the sector. ITCs 4Q/FY19 performance was robust vs. its delivery over FY15-18. Cigarette volume growth has returned owing to a stable tax regime, which validates our thesis that ITCs performance will improve as affordability returns. We arent too perturbed with near term margin pressure, as cigarette biz commands the highest margins across industries (volumes matter). We maintain BUY and value ITC on FY21E EPS at 32x, arriving at a TP of Rs 398.