Shares of ITC today hit a new 52-week high of $299.50 during the company’s Annual General Meeting (AGM). The share price of ITC closed an upward gap and reached a new 52-week high within an hour of today’s opening bell. Since hitting a 52-week low of 204.35 on the NSE in February 2022, ITC’s share price has been rising; during the past five months, it has grown by more than 45%.
Experts on the stock market claim that ITC has a diverse portfolio because of its engagement in the FMCG, hospitality, and tobacco industries. The drop in commodity prices is expected to enable ITC to surpass consumer expectations without raising pricing. They anticipate that Unlock theme will help them boost foot traffic in the hospitality sector. They continued by saying that the market is buzzing about the sale of ITC and that it is boosting the stock despite the lack of even a hint of an official announcement (neither by the government or by the ITC itself).
The CEO of GCL Securities, Ravi Singhal, made the following remarks regarding the reason for the increase in the price of ITC shares: “The drop in commodity prices is expected to benefit ITC’s FMCG division because it will enable the company to meet customer expectations without raising the price of its products. ITC is involved in the hotel business as well. The unlock idea is expected to increase foot traffic in this area of the business over the previous quarters. ITC is also in the business of selling cigarettes because they are currently the products with the biggest tax burdens, but there is little sign that this will change.
According to Ravi Singhal of GCL Securities, the market is apparently replete with rumours that the GoI may soon announce the divestiture of ITC. As a result, the stock is being given the benefit of the doubt. However, neither the GoI nor any ITC officials have made any comments regarding it. Actually, neither of the two has even hinted at this in the slightest. Singhal advised investors to ignore this divestment trigger when making any investing decisions about the ITC shares. He anticipated that the ITC share price will increase soon to around 340. While new buyers can buy the script, existing shareholders are advised to hold the shares with a trailing stop loss at $265.
Sanjiv Puri, Chairman & MD of ITC, made a comment on how the operating business environment was more turbulent last year, particularly in the first half, during his statement at the ITC AGM today. Your company’s gross revenue climbed by 22.7 percent to over 59,000 crores despite these obstacles, which were further affected by severe inflationary headwinds, and its EBITDA increased by 22 percent to around 19,000 crores. Though inflation is still a critical monitorable, it is encouraging that your organisation is managing to maintain good growth across all business areas despite the immediate challenges.
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