itc stock price: ITC stock creates another record and enters the top 10 of the elite club

NEW DELHI: Whether you like it or not, you can no longer afford to ignore it. Once the butt of all jokes on Twitter and WhatsApp, the hotel cigarette stock has now returned to its former glory to re-enter the elite club of the top 10 on Indian exchanges.

Based on the market capitalization of all BSE-listed companies, ITC is now India’s 10th largest company, leaving behind giants and Dalal Street favorites like

, and .

At a market capitalization of Rs 3,63,907 crore at Monday’s closing price, ITC beat Airtel to regain 10th place.

ITC also hit a 52-week high of Rs 296.95 and is now within kissing distance of the Rs 300 mark.

A long favorite of value investors and those who favor high-yield stocks, ITC is still shunned by ESG funds because it derives around 80% of its profits from cigarettes, which are known to cause cancer.

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The Kolkata-based conglomerate is diversified across a number of sectors such as hotels, non-cigarette FMCG items, paper, stationery, agriculture and even IT.

Dalal Street’s bullishness in the stock is evident from the fact that out of 30 analysts covering the stock, a large majority of 21 have strong buy ratings, according to Trendlyne data. Interestingly, none of them have a sell call on ITC.

The highest price target rises to Rs 351, according to the data.

When the market was in a euphoric phase during the central bank fueled bull market in 2020 and 2021, ITC was moving at a snail’s pace. After the Nifty peaked in October last year, ITC stocks slowly began to attract attention as most quality stocks looked expensive.

Up 35% so far this year, ITC is now among the best performing Nifty stocks.

“Overall, there is now a trend in favor of value stocks. ITC, a classic value stock, underperformed due to ESG concerns, especially as tobacco contributes the bulk of ITC’s bottom line. “ITC. This underperformance which had no fundamental basis is being corrected,” said Dr. VK Vijayakumar, Chief Investment Strategist at

.

Veteran fund manager Rajeev Thakkar is one of ITC’s biggest bulls. The Parag Parikh Flexi Cap Fund, which he manages, has an allocation of over 9% in ITC. It is also his biggest equity bet in the portfolio which has 27 stocks.

Domestic Brokerage

said that in the June quarter, ITC is expected to post strong revenue growth thanks to a full recovery in cigarette volumes, robust growth in the carton business, a recovery in stationary business and price increases taken in the FMCG business to pass on commodity inflation.

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Karen J. Nelson