ITC share price surged over 8 per cent to Rs 233.50 apiece intraday on BSE, on expectations of improvement in the business outlook.
ITC’s stock price today rose towards its 52-week high of INR 239 per share, as the company jumped 7% in early trading on Thursday after being a sluggish performance throughout the current bull market advance. The stock of the cigarette-to-hotel behemoth has been rangebound this year, rising only about 8% compared to the benchmark Sensex’s over 23% gain.
So far this month, ITC has gained 11.45 percent. This unexpected bounce is being attributed to an expected improvement in the business outlook, according to analysts. After stabilising for a long time between Rs 207-217, the ITC stock has broken out.
The stock’s upward momentum is supported by solid values, and the stock’s ascent was predicted given how long it has been undervalued. According to analysts, the company’s fundamentals are relatively solid, and as a result of the company’s unlocking, theme companies like ITC, which have good financial strength and strong future, are predicted to capture investors’ attention.
“Any potential business restructuring would be the most favourable trigger for the company, potentially strengthening its outlook even further. We expect the stock’s upward trend to continue, so investors can hold on to their positions for the medium to long term,” said Likhita Chepa, Senior Research Analyst at CapitalVia Global Research.
Participants in the stock market have also been anticipating developments linked to the conglomerate’s business demergers, which they believe will function as a big catalyst for the stock.
The Kolkata-based firm posted a consolidated net profit of 3,343 crore for the quarter ended June, up from 2,567 crore in the previous fiscal’s corresponding quarter. Its revenue from operations increased by 36% to 14,240.76 crore in the quarter under review, compared to 10,478 crore the year before.
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