Today ITC The magic has gone. The stock has jumped over 8 per cent today. Today it has seen the biggest increase in 18 months. Along with this, the Nifty FMCG index has also reached historical levels today. For a long time this stock looked undervalued. Amid strong recovery in FMCG and cigarette sector, the stock was seen hitting new highs today.
In September 16 trading, the stock rose nearly 8 per cent. This is the highest level in the last 7 months. Let us tell you that this was being consolidated from the beginning of 2021. But today it appeared to be coming out of its scope. The stock went up to Rs 233.50 on BSE today, which is its highest level since February 9. Since February, the stock was consolidating between 200-225. So far this calendar year, Nifty has seen a rise of 25 per cent and FMCG index by 19 per cent.
ITC, which deals in FMCG, Hotels, Cigarettes, Agri and IT, has seen only a marginal increase of 3.3 per cent in the last 12 months. It had been the worst-ever among the stocks included in the Nifty FMCG index as Hindustan Unilever had gained 16 per cent in the last 12 months, Britannia 14 per cent and Dabur 19 per cent.
So far, this stock was looking very backward in the ongoing boom of the stock market. But today it showed enthusiasm. Analysts say that the stock will further benefit from value unlocking from low valuations, strong portfolio and possible restructuring.
Atish Matlawala of SSJ Finance & Securities Says that in ITC we will get good returns in the next at least three years. ITC has good brands like Ashirwad Atta, Bingo, Sunfeast, Bee Natural and Savlon. In the coming few years, we will see good growth in the business of the company.
Aparajita Saxena of Trustline Securities It says that the easing of restrictions imposed due to Corona and the fast recovery in the cigarette business are a good sign for this stock. Along with this, due to increasing profits in the company’s FMCG business, this stock is also likely to pick up further.
Ashish Biswas of CapitalVia Global Research Says that ITC was undervalued for a long time and it did not participate in the recent rally of the market yet. So the sudden jump in this stock today came as no surprise, as it was bound to happen. In the recent rally of the market, this stock had seen a lot faster than its rivals. He further said that the registration for ITC is visible at Rs 240. If this barrier is broken, then we can see this stock going towards Rs 265 in short term.
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