ITC 7th firm to cross Rs 6 trillion in market cap
时间:2024-06-28 23:14:13 阅读(143)
ITC on Thursday became the seventh company to cross Rs 6 trillion in market value. The scrip gained 2.8% to close at Rs 492.15, after touching a fresh high of Rs 493.50.
The stock has given returns of 48.4% on a year-to-date basis, with market cap rising Rs 2.01 trillion since then. It has gained 65% in the last one year, and more than 155% in the last three.
It attributes the same to multiple factors, the first being strong volume growth in cigarettes led by market share gains and new product launches. A ramp-up in outlet coverage, effective implementation of the localisation strategy, premiumisation, leveraging of technology on demand and supply side, and moderating raw material input costs — have led to improving Ebit margins.
Further, the hotels business has seen an uptick with travel, wedding, and corporate activities reviving (possible demerger of hotels will only boost profitability). Finally, the steady performance in paperboard and agribusiness in FY23 has also strengthened fundamentals.
ITC’s journey from the Rs 3 trillion to Rs 4 trillion m-cap mark took three years, while that from Rs 4 trillion to Rs 5 trillion took six years. However, it took just three months to scale the journey to Rs 6 trillion.
RIL, TCS, HDFC Bank, ICICI Bank, HUL, and Infosys are the only other companies to have crossed Rs 6 trillion in market value.
“HUL’s market cap is now just 4% higher than ITC. We expect ITC to soon edge ahead. Having gone up more than 50% in 1 year, ITC remains a ‘buy’. Value unlocking in the hotels business has been one of the drivers, apart from decent growth in cigarettes, FMCG, and hotels. The rational tax policy for cigarettes has also been a boon for ITC,” said Abneesh Roy, executive director, Nuvama Institutional Equities.
猜你喜欢
- Sebi resolves 2,672 complaints through SCORES platform in Feb
- Wall Street Week Ahead- Signs of market bottom elude investors after steep selloff
- Wall Street week ahead- Investors look for ‘Santa Rally’ after grim year in US stocks
- Nifty to surpass 19400 or give up gains- See GIFT Nifty, FII data, F&O ban, crude, more before market opens
- Sensex recoups early losses to end flat, Nifty holds 17000; Volatility to continue on hawkish US Fed
- What are popcorn lungs- Read on to know all about its symptoms, causes and treatment
- Senior Living as an Emerging Investment in India- A Glocal Perspective
- Voltas Rating- Buy- Demand outlook augurs well for the firm
- Wall Street 2023- How the year unfolded to trap predictors and bears on the wrong footing