Shares of ITC jumped nearly 4 percent on Monday after brokerage house CLSA upgraded the stock to 'buy' from 'outperform'. The brokerage has a target price of Rs 220 per share for the stock.

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The stock rose as much as 3.9 percent to Rs 174.50 per share on BSE. However, the stock has declined nearly 27 percent in 2020 so far and fallen over 5 percent in the last 1 month.

According to the brokerage, FMCG segment is set to become a major value driver in the future. It expects FMCG to deliver an EBITDA CAGR of 30 percent in FY20-23. CLSA added that long-term positives are unfolding for the firm as revenue diversifies.

Legacy cigarette business will providing cash to the company to meet its ambitious goals, the brokerage noted, further stating that value-accretive acquisitions and improving capital allocation will provide support.

(Edited by : Pranati Deva)