ITC stock reached an all-time high and increased by more than 21 per cent so far this year, making it the 11th Indian listed business to reach a market capitalisation of Rs 5 trillion.
On Thursday, the company’s stock hit a record high of Rs 402.60 on BSE and gained as much as 1.1 percent intraday.
Prior to ITC, companies like Reliance Industries, Tata Consultancy Services, HDFC, Infosys, ICICI Bank, Hindustan Unilever, Life Insurance Corp Of India, State Bank of India, and Bharti Airtel have achieved this milestone.
Given the current market challenges brought on by high inflation, an unpredictable monsoon, persistently low rural sales, and a delay in the decline of commodity costs, ITC has attracted investors thanks to its impressive performance across all of its business segments, including FMCG, paper, and hotels.
Due to its consistent cash flow and dividends, investors consider ITC to be a defensive option. Further increasing the company’s appeal from a basic perspective is its solid operational performance, supported by double-digit increase in cigarette volume and a significant rebound in its hotels division.
Analysts claim that despite a shaky demand environment and ongoing pressure from inflation on margins, ITC has performed well over the past few quarters. This resiliency can be attributed to a number of things, including the fact that its core cigarette business recovered well in the post-Covid era, steady double-digit growth in the FMCG (fast moving consumer goods) segment that does not involve cigarettes, and rapid expansion in the hotel and paperboard, paper, and packaging (PPP) segment.
The lack of price increases in the near future and the government’s efforts to stop illegal cigarette sales, according to analysts, will allow the ITC to maintain its volume growth momentum in the tobacco industry. In addition, the company’s non-cigarette FMCG business is anticipated to keep growing strongly, the hotel industry is anticipated to make a great recovery, and the PPP industry will continue to grow steadily. ITC is therefore expected to experience double-digit sales and PAT growth over the following two years.