- ITC's market capitalisation is now back to ₹4 lakh crore surpassing Adani Enterprises, Asian Paints, L&T – after a gap of five years.
- One factor adding to the optimism was ITC’s strong spike in net profit, which went up 33% in Q1 on a strong show in cigarettes, hotels and agri segments.
- ITC Hotels segment was the outlier as it generated over three-fold revenue during the June quarter.
Following the surge, ITC's market capitalisation has touched ₹4 lakh crore once again surpassing Adani Enterprises, Asian Paints, L&T — after a gap of five years.
One factor adding to the optimism was ITC’s strong Q1 performance with a strong show in cigarette, hotels and agri segments.
Analysts have been bullish on ITC and the
Analysts expect the cigarettes segment to hold up its revenues.
“With no price hikes in the near term and government action on curbing illicit cigarettes will help ITC to maintain volume growth momentum in the cigarette business. Strong growth in non-cigarette FMCG business, recovery in the hotel business and sustained strong growth in the paperboard, paper and packaging (PPP) business will drive double-digit revenue and PAT growth over the next two years,” said analysts at Sharekhan.
“We expect ITC to sustain strong recovery momentum given improved outlook/ delivery in cigarettes business (benign taxation/ share recovery), stronger performance in FMCG and sharp recovery in hotels/ paper business,” said a report by Axis Securities.
KR Choksey, in a report, said that ITC has seen strong revenue traction across its business segments. “Green shoots are visible in the cigarettes business while increased economic activity is benefitting consumption growth in FMCG, and packaging businesses. Hotels business is on a trajectory to deliver pre-pandemic performance.”
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