ITC’s marketcap is back to ₹4 lakh crore after a 5-year gap
Sep 2, 2022, 18:13 IST
- ITC's market capitalisation is now back to ₹4 lakh crore surpassing Adani Enterprises, Asian Paints, L&T – after a gap of five years.
- One factor adding to the optimism was ITC’s strong spike in net profit, which went up 33% in Q1 on a strong show in cigarettes, hotels and agri segments.
- ITC Hotels segment was the outlier as it generated over three-fold revenue during the June quarter.
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Shares of Kolkata-based FMCG-to-cigarette conglomerate have surged 47% in 2022 led by strong financials in previous quarters. Following the surge, ITC's market capitalisation has touched ₹4 lakh crore once again surpassing Adani Enterprises, Asian Paints, L&T — after a gap of five years.
One factor adding to the optimism was ITC’s strong Q1 performance with a strong show in cigarette, hotels and agri segments.
Analysts have been bullish on ITC and the FMCG sector in general driven by demand revival after the pandemic, despite high inflation.
Analysts expect the cigarettes segment to hold up its revenues.
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Nifty 50 stocks below ₹4 trillion m-cap | Market cap |
ITC | ₹4 lakh crore |
Adani Enterprises | ₹3.96 lakh crore |
Adani Total Gas | ₹3.95 lakh crore |
Kotak Mahindra Bank | ₹3.80 lakh crore |
Adani Green Energy | ₹3.77 lakh crore |
Asian Paints | ₹3.28 lakh crore |
Avenue Supermarts | ₹2.96 lakh crore |
Bajaj Finserv | ₹2.76 lakh crore |
L&T | ₹2.72 lakh crore |
Maruti Suzuki | ₹2.69 lakh crore |
HCL Tech | ₹2.50 lakh crore |
Segment revenue | Q1 FY23 | Q1 FY22 | % change |
Total FMCG (including cigarette biz) | ₹11,922 crore | ₹9,534 crore | 25% |
Hotels | ₹580 crore | ₹133 crore | 336% |
Agri business | ₹7,492 crore | ₹4,109 crore | 82% |
Paperboards, papers & packaging | ₹2,267 crore | ₹1,582 crore | 43% |
Others | ₹735 crore | ₹680 crore | 8% |
“We expect ITC to sustain strong recovery momentum given improved outlook/ delivery in cigarettes business (benign taxation/ share recovery), stronger performance in FMCG and sharp recovery in hotels/ paper business,” said a report by Axis Securities.
KR Choksey, in a report, said that ITC has seen strong revenue traction across its business segments. “Green shoots are visible in the cigarettes business while increased economic activity is benefitting consumption growth in FMCG, and packaging businesses. Hotels business is on a trajectory to deliver pre-pandemic performance.”
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