HSBC maintains buy on largecap FMCG major ITC; check target price
The brokerage held that the ITC stock shows good risk-reward ratio and can be bought for possible gains of 12 per cent.
FMCG major ITC is in focus in Thursday's session (October 3) as the global brokerage HSBC has continued with its 'buy' stance on the stock. The brokerage has also raised the target to Rs 580 from the earlier target of Rs 480, implying gains of 12 per cent from the previous close.
The brokerage held that all four factors that shape our investment thesis favourably align, enhancing risk/reward appeal for the FMCG stock. The brokerage held that the stock of ITC trades at a wide discount to FMCG peers, stable tax regime for cigarettes, & formidable FMCG-Others biz contribute to attractiveness even as the entire market environment remains volatile.
Downside risks include share price sensitivity to excessive tax shocks, worse-than-expected cigarette volume growth, & slowness or market share loss in FMCG-Others.
The company on October in a filing informed that its wholly owned subsidiary has acquired 100 per cent of the share capital of Blazeclan Technologies. Consequently, Blazeclan and its following subsidiaries have become step-down wholly owned subsidiaries of the Company with effect from 1st October, 2024.
ITC share price
ITC shares in the last one year has gained over 12 per cent. The stock amid relentless market gains made its fresh 52-week high last week.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.