Goldman Sachs believes a recent correction in cigarette maker ITC Ltd shares is overdone, offering a buying opportunity.

ITC is down 10.6 percent since index compiler FTSE cut its free-float weighting on the stock in mid-December, adding to lingering concerns India would implement a plain packaging norm or bigger warning pictures for cigarettes.

Goldman said ITC offers "an attractive risk-reward" given the cigarette maker has "robust" pricing power and will benefit from the launch of new cigarettes.

An analysis of nine markets that have introduced large pictorial warnings since 2001 did not make a difference in smoking patterns, either on prevalence or premiumisation, says the investment bank.

ITC shares were up 1.1 percent as of 12:27 p.m.