Shares in ITC surged 6 per cent in trade, as big brokerages, including foreign brokerages turned bullish on the stock.

Analysts feel that the stock is still trading at a p/e of just 23 times, one year forward earnings as compared to many other FMCG companies that are trading 30-40 times price to earnings multiples.

ITC posted a net profit of Rs 2495 crore in January-March quarter, up 5.7 percent from Rs 2361 crore in corresponding quarter last fiscal.

The company also a bonus of 2:1 - that is 1 share for every 2 shares held in the company.

The company's revenues jumped 9.4 percent at Rs 10168 crore, which again exceeded expectations. Gross Revenue at the company for the year crossed Rs. 50000 crores.

Excluding agri-commodity exports, Gross Revenue was up 6.4 per cent over the previous year. Pre-tax profit for the year up 6.9 per cent.

The tobacco to hotel major has recently been hit by a sharp increase in excise on cigarettes. Recently, a directive on pictorial warnings on cigarette packets, also stopped production, which hit the company badly.

"Effective Tax Rate was up 280 bps to 34.2 per cent mainly due to increase in surcharge, change in income tax provisions relating to holding period for investments in debt oriented mutual funds to qualify as long-term capital asset, eligibility criteria for claiming investment allowance etc.," the company said in a statement.

On the other hand, while the tobacco business has been growing, most of the other businesses have hardly been able to show robust growth.

"The business environment in the Hotels industry remained challenging with the overhang of excess room inventory exerting pressure on pricing apart from which the

Business had to absorb the gestation costs of new properties. Agri exports from India were impacted during the year due to higher crop output and steeper currency depreciation in competing origins. The Paperboards, Paper and Packaging segment also had to contend with a weak demand and pricing environment," the company said in a statement. ITC Shares were last trading at Rs 344 on the NSE.

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