ITC Achieves Market Valuation Of Rs 6 Lakh Crore, Joins Elite Group Of Companies

New Delhi, 20th July 2023: ITTC, a conglomerate involved in cigarettes and hotels, has achieved an impressive market valuation of Rs 6 lakh crore, joining an elite group of companies. Recently, the company’s shares reached a new all-time high of Rs 485.15, showing a 1% gain on the BSE during intra-day trading with substantial volumes.

With a market capitalization of Rs 6.04 trillion, ITC now holds the seventh position in the overall m-cap ranking among BSE-listed companies. The top six companies with market caps over Rs 6 trillion are Reliance Industries, Tata Consultancy Services, HDFC Bank, ICICI Bank, Hindustan Unilever, and Infosys.

Presently, the stock price of ITC stands at Rs 488.3, reflecting a positive change of 1.97%, resulting in an increase of Rs 9.45. This signifies a favourable movement in the stock price of ITC.

During the calendar year 2023, ITC’s stock price surged by 46% due to continued interest from foreign portfolio investors (FPIs). In comparison, the S&P BSE Sensex was up 9.6% during the same period.

FPIs have increased their ownership of the company, buoyed by positive predictions for earnings growth.

ITC is the leading cigarettes and second-largest FMCG company in India, with an impressive 80% market share in cigarettes. Besides, it has a presence in various other sectors, such as staples, biscuits, noodles, snacks, chocolates, dairy products, and personal care products. The company is also involved in paperboard, printing & packaging, agri, and hotel businesses.

ITC has been successfully expanding its FMCG businesses’ export footprint, leveraging its world-class brands, which are now available in over 60 countries. The PLI scheme has further boosted the company’s exports across Biscuits & Cakes, Snacks, Dairy, and Ready-to-Eat categories.

Financial expert Ashish Kyal from Waves Strategy Advisors remarked that ITC is displaying strong signs of a bullish trend, with the stock surpassing the critical resistance level of Rs 480. This suggests the potential for further upward movement in the stock price.

Emkay Global Financial holds a positive outlook on ITC’s potential and enthusiastically endorses a “buy” rating for the stock, setting a target price of Rs 525. Their research report dated July 15, 2023, indicates expectations of rational tax hikes in the core cigarette business, leading to volume growth and improved mix, resulting in high-single-digit EBIT growth. Additionally, the non-cigarette operations are expected to experience profitable growth and an improved return profile.

Overall, the report highlights the company’s potential for value unlocking in its hotel operations and emphasizes the importance of execution in various sectors for sustained growth.

Please note that the views and investment tips expressed in this report are those of the experts mentioned and not of this website or its management. Investors are advised to consult certified experts before making any investment decisions.