This FMCG Sector Stock Is The Top Nifty 50 Gainer With 1-Yr. Returns At Over 40%

Slow and steady wins the race. This old adage just goes apt with the stock of ITC that has topped as the Nifty gainer in a 1-year timeframe. While Nifty during the same period is still down by a tad, ITC has made remarkable gains considering its previous history. On a YTD basis also, the stock is a star performer with returns to the tune of 31.58%. On Monday, the stock hit a fresh 52-week that was also the stock's three-year high of Rs. 293.3. And in the previous session (July5, 2022) it went very close to its 52-week high price during the day.

Technicals of the stock-price

The stock is said to be in a techically moderately bullish zone. Further as for the 'Buy' and 'Sell' recommendations on the scrip as per the trendlyne data, there is a strong Buy on it with 21 analyst of the 30 recommending a 'Buy' on it.

 

What has propelled the stock of ITC higher?

There is rampant interest in the stock with the FII holding also seeing an increase by 2% in the March ended quarter, with FII shareholding standing at 11.99%.

Also, the company's different verticals are now faring well and are expected to continue their current momentum going forward. The firm's paper, hotel and even FMCG business are back in action. Also, the conglomerate's core revenue generating cigarette business has also recovered from the Covid blow and is swiftly making a comeback with the re-opening of the economy.

The new single-use plastic ban shall prop up the company's paper business.

 

Who can buy into the stock of ITC and its target price as estimated by analyst and brokerages?

As has been the likely history of the stock, it is not known to generate exceptional returns for its investors. Nevertheless, to safeguard your portfolio, if you are the one hunting for a defensive play then ITC can certainly be a good choice. As for the target price, ITC in a recent upgrade has been assigned the target price of Rs. 335 by Motilal Oswal. The brokerage goes on to mention that we are bullish on the stock given the following aspects:

a)better-than-expected demand recovery and a healthy margin outlook in cigarettes, b) healthy sales momentum in the FMCG business, c) lower drag from the Hotels business, and d)
better capital allocation in recent years.

 

Disclaimer:

The views and target price are set out by the experts and brokerages. Readers should engage in their own due diligence before making any bets on this market linked security.

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