Rs 493 is an important level for ITC Share, it can cross the high of 519 or it can fall till 430.
ITC Ltd., one of India’s leading conglomerates, has been making headlines with its impressive stock performance. The company’s share price reached a new all-time high of ₹519.50 on the Bombay Stock Exchange (BSE) today, marking a significant milestone for the FMCG giant.
The stock’s recent rally has been driven by strong investor confidence in ITC’s growth prospects. Over the past week, ITC shares have gained nearly 4%, outperforming the broader market. With today’s gain of 1.17%, the stock has surged by 30% from its 52-week low of ₹399.30, which was hit on March 12, 2024.
Main Points
Analysts remain optimistic about ITC’s future performance. International brokerage firm Jefferies has maintained a “buy” rating on the stock, with a price target of ₹585. The brokerage expects ITC’s FMCG revenue to accelerate in the financial year 2025, while projecting a 10% Compounded Annual Growth Rate (CAGR) for its Earnings Per Share (EPS).
Deven Choksey Research, another prominent brokerage, has an “accumulate” rating on ITC with a price target of ₹545. The brokerage cited ITC’s strong performance across sectors, including effective management in cigarettes, FMCG growth via new channels, and robust hotel expansion. The company’s strategic initiatives have also helped mitigate challenges in the paper and packaging segments and rising agri costs.
Technical Analysis Suggests Further Upside
From a technical perspective, ITC’s stock has been consolidating in a range between ₹495 and ₹515 for the past few sessions, indicating a phase of price stabilization after previous movements. The daily Relative Strength Index (RSI) has not yet climbed above the 70 zone, which would signal strong overbought conditions and increased bullish momentum.
Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, advised investors to adopt a cautious approach towards the FMCG stock. He suggested that since the RSI remains below the 70 zone, the stock may still lack the necessary buying strength to break decisively out of its consolidation phase. For new positions, Patel recommended waiting for a confirmed breakout above ₹515 on a daily closing basis, as a daily close above this level could signal a fresh bullish trend and offer a better entry point for long positions.
ITC’s success can be attributed to its diversified business model, which spans various sectors, including cigarettes, FMCG, hotels, paperboards and packaging, agri-business, and information technology. The company’s strong brand portfolio, which includes Aashirvaad, Sunfeast, Bingo, and Classmate, has helped it maintain a dominant position in the market.
ITC’s FMCG business has been a significant growth driver, with the company expanding its product portfolio and entering new categories. The company’s hotels division has also been performing well, with the expansion of its hotel network and the recovery of the hospitality sector post-pandemic.
Despite the recent rally, ITC’s valuation remains attractive compared to its peers. The company’s price-to-earnings (P/E) ratio stands at 30.84, which is lower than the industry average. ITC’s market capitalization has reached ₹6.43 lakh crore, making it one of the most valuable companies in the country.
Looking ahead, analysts remain bullish on ITC’s growth prospects. The company’s diversified business model, strong brand portfolio, and strategic initiatives are expected to drive future growth. With the economy recovering from the pandemic-induced slowdown, analysts believe that ITC is well-positioned to capitalize on the growing consumer demand.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
