ITC hits all-time high; CLSA raises target price to Rs 430

ITC share price: Shares of  ITC, cigarette-to-hotel conglomerate company rose on Thursday to scale an all-time high of Rs 402.65 apiece. Prior to this, the stock on April 11, 2023, had touched a fresh lifetime high of Rs 398.2 per share on the BSE.

Last seen, shares of ITC traded 0.6 per cent higher on NSE at Rs 401.15 apiece and on BSE, the scrip quoted Rs 399.40 which was 0.25 per cent on the upside.

Why is CLSA bullish on ITC?

Global brokerage CLSA is bullish on ITC and has raised the target price of FMCG company’s shares by 3.6 per cent.

CLSA has maintained an ‘Outperform’ rating on ITC and has raised the target from Rs 415 apiece to Rs 430 apiece.

The brokerage in the report said that corporate action such as the demerger of its hotel business is awaited. It further stated that ITC has better capital allocation and higher margin trajectory from FMCG business.

According to CLSA, a 4 per cent dividend yield provides downside support and there has been an increase in FY24-25 earnings by 2 per cent to 4 per cent.

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What do analysts suggest on ITC?

Choice Broking Executive Director Sumeet Bagadia has earlier said that Rs 400 is a key psychological level for ITC stock and once this is breached, the stock may hit targets of Rs 425, and Rs 440 per share in the next one-two month.

Bagadia is of the view that ITC shares may breach this important level of Rs 400 in the coming weeks by April-end.

Sharekhan reiterates a ‘buy’ call on ITC with a target price of Rs 450 per share on the back of double-digit earnings growth visibility.

Consistent good growth in the cigarette business, strong tailwinds in the hotel business, and scale-up in the non-cigarette FMCG business make its earning visibility better compared with peers, the domestic brokerage said in its report on the FMCG major.

ITC share price history

Year-to-date (YTD), the stock has gained more than 20 per cent against the headline index’s decline of 3.3 per cent.

In the past six months, the stock has zoomed over 14 per cent against Nifty50’s rise of 0.47 per cent.

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