Last Updated on Jul 8, 2022 by Anjali Chourasiya

The Indian Tobacco Company (ITC), once mocked for being a tortoise, is now breaking all records. Shares of ITC have gained a stellar 33%, the highest gainer in Nifty this year so far. It is on its way to entering the elite club of the top 10 companies in India.

Currently, though the benchmark indices have turned negative, ITC has hit its 3-yr high of Rs. 294.35. It is also at its fresh 52-week high. The stock has zoomed 117% from its March 2020 low of Rs. 134.95. Previously, it had hit a record high of Rs. 301.33 in April 2019. In one year, the stock has surged to over 44%.

The Kolkata-based FMCG company derives over 80% of its profits from cigarettes. A stable tax environment for cigarettes in recent years has allowed ITC to calibrate price increases to avoid a disruption in demand. For Q4 FY 2022, the company has reported strong results with around 9% cigarette volume growth. 


Based on market capitalisation, the stock is poised to enter the elite club of the top 10 companies in India. It is now at the 11th spot behind Bharti Airtel. ITC has a market cap of Rs. 3.6 lakh cr. At the same time, Bharti Airtel stands at Rs. 3.8 lakh cr. and HDFC secures the ninth position with a valuation of approximately Rs. 4 lakh cr. ITC has left Bajaj Finance and Kotak Mahindra Bank behind recently.  

Furthermore, Motilal Oswal Financial gave a target price of Rs. 335, a 22% upside to the current stock price. They said, “We expect this trend to continue, which should result in improved cigarette volumes and earnings visibility over the medium term. The breadth of ITC’s FMCG product portfolio gives it an advantage in a rapidly changing demand environment.”

Recently, the cigarettes-to-hotels conglomerate has allotted 92,31,830 Ordinary Shares to its employees at Rs. 1 apiece under the Employee Stock Option Scheme. Last month, Ventura Securities’s research note analysts said that, among Nifty 50 stocks, ITC is one of the few stocks that provide a strong growth opportunity and an attractive dividend yield of 4.19%. 

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

The blog posts/articles on our platform are purely the author’s personal opinion and do not necessarily represent the views of Anchorage Technologies Private Limited (ATPL) or any of its associates. The content in these posts/articles is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, please consult a professional financial or tax advisor. The content on our platform may include opinions, analysis, or commentary, which are subject to change, without notice, based on market conditions or other factors. Further, the use of any third-party websites or services linked on the website is at the user's discretion and risk. ATPL is not responsible for the content, accuracy, or security of external sites. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The examples and/or securities quoted (if any) are for illustration only and are not recommendatory. Any reliance you place on such information is strictly at your own risk. In no event will ATPL be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

By accessing this platform and its blog section, you acknowledge and agree to the Terms and Conditions of this website, Privacy Policy and Disclaimer.