ITC Enters Rs 6 Lakh Crore M-Cap Club, Shares Trading At 52-Week High

ITC, one of India’s leading FMCG conglomerates, entered the exclusive Rs 6-lakh crore market capitalisation (MCap) club on Thursday. With its shares trading at an annual high of Rs 487.85 in the stock market, the company achieved record intra-day trade volumes of more than 87 lakh shares on NSE till 12:22 PM. With an up movement of more than 1 per cent, ITC stands as the second-biggest gainer in the Nifty50 list on Thursday.

Foreign Portfolio Investors (FPIs) recently expressed their faith in ITC’s growth. According to a report by Business Standard, at the end of the June quarter, FPI’s stake in ITC stands at 14.51 per cent as compared to 14.21 per cent at the end of the March 2023 quarter and 13.81 per cent at the end of the December 2022 quarter.

With a market capitalisation of Rs 6.06 lakh crore, ITC is among the top 10 gainers on the BSE Sensex along with peers Hindustan Unilever, and Nestle. ITC now ranks seventh in the overall m-cap ranking among BSE-listed companies.

Reliance Industries, Tata Consultancy Services, HDFC Bank, ICICI Bank, Hindustan Unilever, and Infosys are other firms that have crossed have crossed the Rs 6 lakh crore market capitalisation mark.

Also Read: Jio Financial Services Valued At $20 Billion, Above Estimates

With products ranging from cigarettes to biscuits and many more, the conglomerate has attracted a positive outlook from experts with its performance in the market. A handsome growth in the cigarette business has helped ITC establish its stronghold.

As per the report, analysts at ICICI Securities credit the high-volume growth of the company’s shares to the steady taxation on cigarettes and solid traction of cigarettes on the higher end of the price spectrum. “Despite strong run up in the stock, it is still trading at attractive multiples compared to other FMCG companies. We remain positive on long term growth outlook for the company,” the analysts said.

Citing a recent FMCG sector report, analysts at Antique Stock Broking believe consumer companies might see a rise in rural demand in the near future and a fall in commodity prices should further help in the upcoming quarters.