InvestorQ : What explains this rally in ITC stocks?
ishika Banerjee made post

What explains this rally in ITC stocks?

1 month ago

The absolutely unfancied ITC, a much maligned cigarette company, recently touched a 2-year high of Rs293. Of course, there are the expectations of strong earnings growth. The stock surged 7% in the last 2 days and it is up 33% returns in last 6 months. During this period, most of the indices and stocks were lower. IN short, the unfancied ITC has emerged as the clear star performer in the Nifty.

Apart from a stable tax environment for the cigarettes business, an all-round pick-up in FMCG business is also helping. It expects to report improved cigarette volumes and earnings visibility with the worst of the pandemic period behind and sales back to pre-pandemic levels. While FMCG margin pressures are likely, its strong earnings traction in cigarettes, hotels and paperboards should hold the company in a good diversified position.