With a market capitalization of ₹ 5,27,507 crores, ITC is a blue-chip company that has diversified business interests. The conglomerate operates through four business segments — FMCG, Hotels, Paper and Packaging, cigarettes and agribusiness.
The company’s shares have been on an uptrend and reached a new all-time high of ₹ 428.50 apiece on Wednesday. In the past year, its shares gained 64.37% as its share price surged from ₹ 259.75 apiece to ₹ 426.95 apiece.
Data suggests that the company’s share price started rising after retail investors sold a stake to Foreign Institutional Investors (FIIs).
According to the shareholding pattern of the company, Foreign Institutions merely held a 12.68% stake in the company as of the June quarter of 2022. More specifically, GQG Partners Emerging Markets Equity Fund held 13,58,86,187 shares or a 1.10% stake in the company. Meanwhile, retail investors held a 48.46% stake in the company.
Data for the September quarter shows that FPI and FII investments flocked to the company, with a total shareholding of 5,28,90,34,691 shares or a whopping 42.69% stake in the company. Simultaneously, retail shareholding in the company fell to 19.10%.
Foreign institutions continued to buy ITCs shares and they hold a 43.35% stake as per the data for the January to March quarter. On the other hand, retail investors hold merely an 18.90% stake in the company.
ITC has an ideal return on equity of 24.82% and a good dividend yield of 2.89%. In fact, its share price has risen by 100% since February 2022, giving multibagger returns. If an investor had invested ₹ 1 lakh in the company’s shares in Feb last year, the value of their holdings would have been ₹ 2 lakhs today!
Written by Simran Bafna
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
