ITC stock hits 21-month high as the Co regains Rs 3-trillion market cap

Published On: Wednesday, September 22, 2021 | By:

ITC stock hits 21-month high as the Co regains Rs 3-trillion market cap

ITC's market capitalisation returned to Rs 3 trillion marks today(22nd Sept.2021) after its stock hit a 21-month high on the bourses. The stock hit an intra-day high of Rs 244.70, up 1 percent on the BSE today, and was trading at its highest level since December 2019. In the past week, ITC has outperformed the market by surging 13 percent on expectations of an improvement in the company’s businesses. In comparison, the S&P BSE Sensex was up 0.62 percent during the week. At 01:55 pm, ITC’s market cap stood at Rs 2.999 trillion on the BSE, exchange data shows.

Foreign brokerage houses are bullish on ITC as they believe the company’s cigarettes business will fully recover with the aggressive vaccination drive and reduction in Covid-19 cases. In the April-June quarter, ITC's cigarettes volumes were impacted by the second wave (down 21 percent on a two-year basis). However, week‐on‐week improvement was seen since mid-June with most markets returning to normalcy and witnessing faster recovery compared with the first wave.

"ITC has 78 percent market share in cigarettes and presence in staples, biscuits, noodles, snacks, chocolate, dairy, and personal care products. Lower lockdown impact and the faster recovery trends seen in cigarettes are positives and improve earnings growth visibility. In addition to the rising profitability of FMCG, improvement in IT is notable, and can offer incremental upsides," said analysts. They maintain a ‘buy" rating on the stock with a target price of Rs 270.

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