ITC's stock rose 8% on the BSE in intra-day trade on Thursday, reaching a seven-month high of Rs 233.30, on expectations of a better business outlook. Since February 2021, the stock has been trading at its greatest level. On February 9, 2021, it reached a 52-week high of Rs 239.15.
The dramatic surge in the counter today, according to stock market specialists, was expected because it had been undervalued for a long time. Experts feel the company's fundamentals are robust, and revenue is projected to increase as a result of the unlock theme.
With a 78 percent market share in cigarettes and a presence in basics, biscuits, noodles, snacks, chocolate, dairy, and personal care items, ITC is India's largest cigarettes and second-largest fast moving consumer goods (FMCG) company.
The company also has a presence in the paperboard, printing, and packaging business, which generates Rs 4,549 crore in revenue, as well as the agribusiness, which generates Rs 8,001 crore in revenue (FY21).
Despite today's strongest climb, ITC's stock has lagged the market in the past year, rising only 28% versus a 50% increase in the S&P BSE Sensex. ITC's stock price has dropped 25% in the last three years, compared to a 55% rise in the benchmark index.
CLSA, a worldwide research group, kept its "buy" call on the stock last week, with a target price of Rs 265 per share. The brokerage firm believes that the FMCG industry is well on its way to being profitable.