The shares of ITC Limited started the last trading day of the week on a positive note as the stock rallied and reached its 5-year high of Rs 353.20 in the early hours. In the past five days, the stock has gained approximately 6 per cent.
On a year-to-date basis, the stock price has increased from Rs 219 a piece in January to the current levels logging a multibagger return of 60 per cent YTD.
The company recently announced a 25 per cent increase Year on Year (YoY) in its revenue from operations which stood at Rs 18,608 crore in the recent quarter as compared to Rs14,844 crore in the year-ago period.
Their revenue from the FMCG segment rose 21% YoY followed by their Cigarette business and Hotel business which saw an increase of 23.3% and 81.9%, respectively. Revenue from their Agribusiness and Paper segment also saw an increase of 44% and 54%.
In Q2FY22, the tobacco giant reported a 24 per cent increase in their net profit at Rs 4619.77 crore which is an increase from Rs 3,713.76 crore in the year-ago period, beating the estimates of analysts.
Post the Q2 results, global brokerage firm Jefferies has maintained a ‘Buy’ rating on the stock with a target price of Rs 415 per share, implying an upside of 20% from the current levels.
ITC Limited is an Indian conglomerate that operates in a variety of industries, including FMCG, hotels, software, packaging, paperboards, speciality papers, and agribusiness.
The company has a market capitalization of Rs 4,32,646 crores and a dividend yield of 3.3% as of October 21st, 2022. In addition to that, the conglomerate is also a debt-free company.
Written by Anoushka Roy
