New Delhi: FMCG-Hotels conglomerate ITC Ltd ranked seventh amongst Indian listed companies to cross the mark of Rs 6 lakh crore market cap for the first time as its shares grew over 48 per cent in this year.
The company’s shares struck a record high of Rs 489 a share and obtained as much as 2 per cent INTRADAY.
Previously, other indian companies which have achieved landmarks are Reliance Industries, Tata Consultancy Services, HDFC Bank and ICICC Bank. hindustan unilever and inforsys.
Investors were impressed by the company’s portfolios which included cigarettes, FMCG, paper and hotels.
The market valuation of the company grew by Rs 1 lakh crore within three months due to the increase of 23 per cent in its shares.
In the past 12 months, the conglomerate’s stocks have elevated returns among all 30 constituents of the BSE Sensex with 65.8 per cent.
Meanwhile, it gained growth by 22.8 per cent in NSE Sensex.
FMCG conglomerate’s financials
Earlier, in May the FMCG major reported its standalone profits up by 21.37 per cent to Rs 5,086.90 crore for the quarter ended on March 31, 2023.
With this, the company’s revenue for the quarter grew by 6.14 per cent YoY rising to Rs 17,224 crore in comparison with Rs 16,226.63 crore.
From the cigarette segment, the revenue for the March quarter stood at Rs 7,355.83 crore up by 14 per cent in comparison to Rs 6,443.37 crore in the corresponding period a year back.
Jefferies India, an investment bank based in Mumbai said, “In our base case, we forecast c.10 percent annual growth in Cigarette EBIT over FY23-25E and a c.12 percent growth in FMCG revenues. Cigarette margins are expected to expand by 120bps over FY23-25E as an increase in consumer prices should more than offset tax hikes.”
The Bank further added,” We use SOTP methodology to value the ITC cigarette business at 27x Mar-25 earnings, new FMCG at 5x Mar-25 sales, Agri and paperboard businesses at 15x Mar-25 EPS, and hotels at 18x Mar-25 EV/ Ebitda.