Rahul Arora discussed ITC's persistent valuation discount versus FMCG peers due to regulatory overhang, in response to a question on regulatory risk across sectors

Tue 6 Oct 2026

ITC forward valuation

27 to 28 times

Consumer sector forward valuation

above 40 times

Heard on business television between 09:36:11 - 09:39:11 IST.

• Discussion touched on regulatory overhang across hospitals, insurance and banks, extending to food consumption space.
• Arora said valuation discounts cannot be scripted purely for regulatory overhang, recalling his struggle to understand ITC's discount over 25 years as a consumer analyst.
• He said ITC trades at not more than 27-28 times one-year forward earnings versus the rest of the consumer space trading above 40 times.
• He noted ITC faces regulatory overhang intermittently, with some budgets passing without impact and others causing issues.

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