The stock of ITC has soared by 60% in a year. The market leader in cigarettes has seen a surge in valuation amid relatively flat markets.
ITC shares are trading a Rs 344, just 4.7% away from its 52W High of Rs 361.45. The timely diversification of the ‘tobacco’ company in the FMCG, Hotels, Packaging, Speciality Papers, and Agri-Business is propelling growth in the Large Cap with good performance.
(Image - ITC Website)
The share price of ITC has surged from Rs 220.20 on Jan 31, 2022, to Rs 346.60, a year later on Jan 31, 2023.
In comparison to ITC’s massive gains, the indices of the Indian stock market, Nifty50 and Sensex, have surged by 5.55% as reported by Zee Business.
The company has seen an 18.7% increase in net sales from Rs 49,272.78 crore in 2021 to Rs 60,668.09 crore in 2022. The company had an increase in the net profit margin to 25.1% in the Sept quarter compared to the 22.5% in the June quarter. The company has a PE ratio of 24.86 – lower than the sector PE of 35, ROE of 25.89% and a 3-year average Net Profit margin of 23.78%.
Analysts have a bullish stance on ITC as 14 analysts have forecasted a long-term target price of Rs 373.92 as reported by Trendlyne. The conglomerate is one of the most valued companies in India with gross sales of Rs 90,104 crores and net profit of Rs 15,058 crores as of 31/03/2022.
The company has recently acquired Yoga Bar to strengthen its position in the FMCG segment.
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