ITC Share Price: Shares of ITC were trading over 1 per cent higher in Friday’s trade. At 12:03, the stock price of ITC was quoting at Rs 453, up 1.15 per cent from yesterday’s Rs 447.85.
Brokerage house, Nomura is bullish on ITC as its cigarette business’ volume trajectory remains strong, FMCG margins are improving, and the hotel business is seeing an increase in Average Room Rentals (ARRs). The company can expect a strong CAGR with improving rural demand trends and continued premiumisation in the cigarette business.
On the last day of trading, ITC opened at Rs 444.4 and closed at Rs 444.45. The high for the day was Rs 448.65 and the low was Rs 444.4. The market capitalization for ITC was Rs 556,588.77 crore. The 52-week high for the stock was Rs 452 and the 52-week low was Rs 256.47. The BSE volume for ITC was 223,116 shares.
ITC March Quarter Revenues
The company’s March quarter revenues rose by 17 per cent to Rs 70,937 crore year-on-year with the hotel business rising on the crest of pent-up demand in post covid. ITC’s operating margins stood at 36 per cent and net profit was up 26 per cent to Rs 19,477 crore in FY23 compared to the previous year.
According to the brokerage, rural demand continues to improve gradually in Q1 and the management remains watchful on the potential impact of El Nino on rainfall, and consumer sentiment.
“Prices of certain key commodities such as tobacco, sugar, and filters have witnessed increases. Prices of other input commodities such as vegetable oils, crude oil, and palm oil have witnessed moderation,” it said.
“Home and personal care (HPC) products have witnessed some price cuts. The volume growth trajectory remains strong in the cigarette business,” it added.
The reasons why Nomura is optimistic about the ITC stock are:
Cigarette business:
Hotel Business:
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