The shares of ITC Ltd reached its new 52-week high of Rs 290.50 in the early trading session of Monday. The stock closed at Rs 284.35 on Friday. In the last seven days, the stock has gained more than 7.13% while it has risen more than 32% so far this year (YTD).
Analysts seem to be bullish on the stock moving forward. Motilal Oswal recently upgraded the stock to ‘Buy’ with a target price of ₹335 which represents an upside of 16% from the current levels.
“80%-plus of profits come from cigarettes and in the consumer sector this is one of the few stocks that is relatively well insulated from commodity cost inflation,” said Gautam Duggad, head of research – Institutional Equities at Motilal Oswal Financial Services.
“FY23 will be a good year for ITC. Cigarettes should do reasonably well and see double-digit profit growth. There is safety in ITC because it is less affected by commodity inflation. It should see 15% returns in a year,” said Abneesh Roy, executive director at Edelweiss Financial Services.
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.
Their FMCG business makes up to 73% of their total revenue, followed by their Agribusiness which makes up to 13%. ITC’s Paperboards, Paper & Packaging, and Hotels Business make up 10% and 4% respectively.
The company posted a 12% growth in net profit to ₹4,195 crores in the Q4FY22, compared with ₹3,755 crores a year-ago period. Its net profit grew by 12% to ₹4,195 crores compared with ₹3,755 crores a year ago.
Written By – Anoushka Roy
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