ITC rally has more legs on FMCG biz scale up, high cigarette vols: Analysts

ITC share: The stock has firmly outperformed the benchmark returns by rallying 56 per cent over the last year versus a 3% and 23.5% gain in the Nifty50 and Nifty FMCG indices during this time

Harshita Singh New Delhi
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After doubling investors’ wealth over the last two years, the stock of cigarette-to-hotels conglomerate ITC has more steam left as the company is seeing firm growth across all its verticals, analysts say. A consensus of Bloomberg estimates shows the stock can rise to Rs 435.6 ahead from the current levels of Rs 410. However, some brokerages have target prices of up to Rs 480 on the share with a potential upside of 17 per cent. 
“ITC had not been growing for 5 years, however in the last one year it began to grow as the government did not increase taxes on cigarettes. All the verticals have started to do very well now. The hotel business is seeing very high occupancy, the paper business is doing well after the Ukraine war, and cigarette business volumes are improving. So overall, the growth has just started and we see an upside of 15-20 per cent in the stock over the next one year,” said AK Prabhakar, head of research at IDBI Capital.

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First Published: Apr 24 2023 | 2:30 PM IST

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