ITC, the cigarette-to-hotel conglomerate, hit a fresh record high of Rs 497.55 apiece on the BSE in Friday's trading session but pared all gains later. Yesterday, the company's market capitalisation crossed the Rs 6 lakh crore milestone.

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At around 12:50 PM, ITC stock was trading at Rs 491.35 apiece, down 0.16 per cent on the BSE, and the market cap stood at Rs 6,11,791.93 crore. At current levels, it's only a matter of time before the scrip touches the crucial Rs 500 level. So far in 2023, the stock has gained nearly 48 per cent.

What's boosting the rally?

According to Zee Business research, cigarette businesses in India are under strict regulations, and so is ITC's cigarette business, but still, the company has made a better-than-expected recovery in its cigarette business.

Further, the research indicated strong growth in other businesses is beneficial for the company, and improvement in environmental, social, and governance (ESG) scores is expected to lure big investors.

According to the research desk, all the company's businesses are profitable at the Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) level, and strong performance is expected from ITC's FMCG business. The company also has continuous double-digit growth in cigarette volumes.

ITC has the cheapest industry valuations, according to research.

Important events to keep an eye on for ITC

>> The FMCG giant will have an Annual General Meeting, or AGM, on August 11, 2023.

>> The merger of hotel businesses will be a significant trigger.

ITC stock action

From 2003 to 2019, the stock traded in the range of Rs 200 apiece to Rs 275 apiece. In 2020, the stock fell as low as Rs 134 apiece due to COVID volatility. However, In 2022, the stock gained momentum and traded between Rs 200 apiece and Rs 360 apiece. In 2023, the scrip traded between Rs 327 apiece and Rs 495.8 apiece.

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