ITC shares’ rally continues as stock surges to 3-year high
Shares of ITC Ltd continued the uptrend with the stock rising to a 3-year high in Monday’s early session as it was up over 2% to ₹290 apiece on the BSE, its highest since 2019. From being a dull performer in the past few years, the stock has outperformed in 2022 so far as it has rallied more than 32% during the period as compared to about 11% fall in benchmark Sensex.
ITC has a diversified presence across industries such as FMCG, hotels, packaging, paperboards, specialty papers and agribusiness. The FMCG major posted 12% growth in net profit to ₹4,195 crore for the January-March period, compared with ₹3,755 crore a year ago. The Kolkata-based company’s revenue from operations rose 15% to ₹17,754 crore as against ₹15,404 crore in the last year period.
In a report in mid-June brokerage Motilal Oswal had upgraded ITC shares rating to buy as demand was quick to recover to pre-pandemic levels after the second covid wave and Motilal Oswal’s channel checks suggested that demand remains robust.
“A better than expected demand recovery and a healthy margin outlook in Cigarettes, healthy sales momentum in the FMCG business, lower drag from the Hotels business, and better capital allocation in recent years leads Motilal Oswal to turn constructive on the ITC stock,” it said said in the note.
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