ITC Limited saw its shares gain as much as 2.5 percent in the early hours of Thursday as the stocks reached an All-Time High of Rs 393.85. The conglomerate’s shares have gained approximately 17 percent in the past month.
The scrip has been gaining after it posted its quarterly numbers. Their total revenue stood at Rs 19,616.08 Crore, up 4 percent Year on Year from Rs 18,787.72 Crore. The Company sustained strong growth momentum across all operating segments during the quarter.
The net profit of the company stood at Rs 5,070.09 Crore which is an increase of 23 percent Year on Year from Rs 4,118.80 Crore. ITC’s Paperboards, Paper & Packaging saw a growth of 35.2 percent followed by Agri-Business and FMCG segments recording 32.6 percent and 18.5 percent respectively.
ITC Limited is an Indian conglomerate company that has a diversified presence across industries such as FMCG, hotels, software, packaging, paperboards, specialty papers, and agribusiness.
The stock gained momentum and has been on an upward trend since 2022. In the span of a year, the stock has increased from Rs 215 to the current levels, delivering a return of 82 percent in the period.
Based on the recent developments, brokerage firm Nomura is bullish on the stock and has a ‘Buy’ tag with a target price of Rs 455 per share representing an upside of 15% from the current levels.
We anticipate that the strong business growth momentum will continue across all divisions. In the case of cigarettes, we believe that a pragmatic tax regime not only provides fodder for illicit volume growth but also raises the predictability premium. We expect FMCG, hotels, and paperboard to continue to witness improvement in business and margins supported by new launches, and reach expansion, the brokerage said.
Written by Anoushka Roy
