The shares of ITC Limited have crossed the ₹ 300 mark for the first time in three years! The FMCG major’s shares extended the rally to hit a fresh 52-week high of ₹ 302.20, after hitting a one-year high of ₹ 299.50 apiece on Wednesday.
At the company’s AGM (annual general meeting), ITC Chairman & MD Sanjiv Puri informed shareholders and board members about the stellar performance of the company in recent years. He announced the company’s plans to foray in global merchandise.
Over the past two-three years, the scrip has been known to rally and then retrace its steps. Its shares have rallied 36.33% as per year-to-date data. This means that if an investor would have invested ₹ 1,00,000 in the company’s shares at the beginning of this year, the value of their holdings would have been ₹ 1,36,330 today.
Its shares are currently trading at a PE (TTM) of 24.22 which is lower than the PE TMM of its peers like Hindustan Unilever (67.21) and Godrej Consumer Products (67.21). The company has a market capitalization of ₹ 36,87,457 crores. It has a high dividend yield of 3.86%, which adds to its attractiveness.
“We like ITC not only because it has started witnessing growth in cigarette volumes and profitability but also because of the possibility of demerger and value unlocking the potential for various businesses of ITC, including hospitality, FMCG, and IT,” said Nishit Master, portfolio manager at Axis Securities.
Axis Securities has a buy call on the company’s shares with a target price of ₹ 313. Its shares are currently quoting at 298.90 apiece. This implies an upside of 4.71%.
Centrum Broking has a buy call on ITC with a target price of ₹ 351. This indicates an upside of ₹ 17.43%.
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