ITC Share Price: ITC shares hit a new 52-week high today amid the company’s Annual General Meeting (AGM) 299.50 each level. ITC share price today opened with a sharp margin and reached a new 52-week high within an hour of opening today. 52 weeks after making lows 204.35 on NSE in February 2022, ITC share price has been on an upward trend and in these five months, it has gained over 45 per cent.
According to Share Market ITC has a diversified portfolio as it has presence in FMCG, Hospitality and Cigarettes business. As commodity prices have come down, ITC is expected to meet the expectations of the customers without raising its prices. Apart from this, the unlocked theme is also expected to help increase the footfall in its hospitality business. He also said that the market is buzzing with disinvestment in ITC and it is also working in favor of the stock, though there is no indication of any official statement (either by the government or by ITC itself).
Speaking on the reason for the boom ITC share priceRavi Singhal, CEO, GCL Securities said, “After the easing of commodity prices, ITC’s FMCG business is expected to benefit as it is expected to enable the company to meet the expectations of its clients without raising the prices of its products. ITC has presence in hotels. Business too. Due to unlock theme, this segment of company is also expected to get better footfall as compared to last few quarters. ITC is also in cigarette business and there is no way to increase tax on cigarettes. There is no indication. Taxes are already at an all-time high.”
Ravi Singhal of GCL Securities said the stock is also getting benefit of doubt as the market is buzzing with speculations that the Indian government may announce disinvestment of ITC in the near term. However, neither the Government of India nor any ITC official has spoken any word in this regard. In fact, neither of them has given a single hint in this regard. Singhal advised investors to avoid this disinvestment trigger while taking any investment decision with respect to ITC shares. He said that the share price of ITC may increase 340 levels in the short term. Those having this stock in their portfolio are advised to hold over the counter with Trailing Stop Loss 265 while new buyers can buy scrips at From 275 to the current level, keeping the stop loss 265 each level.
Important Points from ITC AGM
Speaking at the ITC AGM today, Sanjeev Puri, President and MD, ITC said, “The past year was marked by increased volatility in the operating business environment, especially in the first half. Despite these challenges, which were also severely compounded by inflationary concerns. Unfavorable circumstances, your Company’s Gross Revenue increased by 22.7 percent 59,000 crore while EBITDA increased to approx. 19,000 crore with a growth of 22 per cent. It is indeed heartening that, despite near-term challenges, your Company continues to deliver strong growth across all business segments, although inflation remains a key monitorable. As valued shareholders, you will also be proud that your Company has achieved many milestones in its sustainability journey with global excellence in climate action, capacity building in green infrastructure and new dimensions in inclusive growth. “
Highlighting the fundamentals regarding ITC’s fundamentals that attract investors, Sanjeev Puri said, “(ITC) has built and nurtured a portfolio of 25 world class Indian brands in a short span of time, with a massive Have a superordinate vision to create and sustain. Value in India. ITC is today the largest incubator of FMCG brands in India, anchoring competitive and inclusive value chains across Wheat, Potato, Fruits & Vegetables, Dairy, Aqua, Forestry Is.
ITC’s CMD said that the company’s intervention in new FMCG businesses has enabled a strong growth of 25 per cent in revenue during the last two years of the pandemic, which has reached approx. 16,000 crore in FY22. Despite unprecedented inflationary constraints, ITC maintained EBITDA margins last year and improved margins by 650 basis points over the past 5 years. As part of the ITC Next strategy, FMCG businesses continue to create structural competitive advantages and increase profitability through interventions.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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