ITC Hits Rs 300-Mark First Time In Three Years; Should you Buy, Sell or Hold?

ITC shares: ITC shares on Thursday reached the value of RS 300 for the first time since May 2019, soaring more than 10 percent as far as July amid the expectations of better income than expected for the June quarter in the previous trading session. Srip has collected speed lately, collecting about 48 percent of the lowest 52 weeks RS 204.50. Stocks reached the highest level of three years RS 301.45 per share – the last level was seen on May 24, 2019. At 10:15 am on July 21, the script was traded at RS 300 per share in BSE, up 1 percent from the previous previous closure. So far this year, FMCG shares have advanced 38 percent.

In his speech at the GMS, Chairman of ITC & MD Sanjiv Puri told shareholders and board members about the performance of the company’s stars in recent years. Puri praised the company’s performance in the FMCG segment and announced the company’s plan to go into global merchandise.

The FMCG company has not announced the June quarter income date.

“When we reached a scale for your company’s FMCG portfolio, our aspirations were also to bring this world-class brand to foreign markets. In recent years, we have set distribution arrangements abroad allowing considerable export progress from the proud Indian brand ‘to more than 60 countries. Over time, such exports will make a major contribution to the growth of your company’s FMCG added portfolio, “said Chairman of ITC & MD.

What should investors do now?

Stock emerges as a good defensive game in the volatile equity market. The global stock market including India is under pressure due to higher inflation and monetary tightening expected by the central bank. Analysts are also afraid of recession due to an increase in aggressive interest rates by federal reserve as.

However, analysts estimate that ITC is at least affected by the slowdown of rural because the portfolio consists of most food. The company offers the best inflation value hedging because the business is essentially immune to the risk of inflation. Investors also bought shares because the tax regime was stable for the second year in a row. Analysts say this has provided company flexibility to increase prices without disturbing demand. “We hope that this trend will continue and this will produce a better volume of cigarettes and the visibility of income during the medium term”, Motilal Oswal Securities said in the notes to investors.

In its RUPS, Major FMCG said ITC wanted to increase exports of FMCG products of added value. It also talks about the strategy for the main segment, launch of production, premiumization in the cigarette segment, and the IT segment that emerged.

Dilip Bhat from Prabhudas Lilladher said he still saw ITC as one of the companies that could provide extraordinary performance because secular growth could be quite good.

The Ventura Securities brokerage company said that strong growth in all business segments is expected to encourage the overall income of ITC to RS 86,678.6 Crore (17.7 percent CAGR) more than FY21-24E. EBITDA is estimated to grow in CAGR 15.9 percent to RS26,513.4 Crore while net profit is estimated to grow in CAGR 14.5 percent to RS19.739.7 Crore.