ITC shares touch all-time high, come within inches of Rs 400; what analysts suggest on cigarette-to-hotel conglomerate's stock

ITC share price @ record high: The stock of ITC — a Kolkata-based conglomerate with operations spanning from cigarettes to other FMCG products to hotels — rose on Tuesday to scale an all-time high, surpassing an earlier record of Rs 394 made on February 23.

ITC shares at record high

ITC shares gained by Rs 9.5 — or 2.4 per cent — at the strongest level of the day to touch a record Rs 398.2 apiece on BSE, coming within inches of the Rs 400 level for the first time ever. The stock of the cigarette maker —  whose popular brands include Classic, Gold Flake, Insignia, American Club, India Kings and Wills Navy Cut — settled stronger by Rs 7.4 or 1.9 per cent for the day at Rs 396.1 apiece, finishing higher for the fourth session in a row.

The ITC stock traded in high volumes. As many as 7.8 lakh ITC shares changed hands on BSE during the session, as against a daily average of seven lakh in the past two weeks, according to provisional exchange data. 

What analysts say on ITC shares

According to Zee Business research, ITC shares are in a bull run driven by a better-than-expected recovery in its cigarettes unit and strong growth in its other businesses.

The breakout in ITC shares can continue all the way to Rs 400, Mehul Kothari of Anand Rathi Shares & Stock Brokers told Zee Business. 

He suggests buying the Rs 400 call option of ITC at Rs 3.5 for a target of Rs 5.5 with a stop loss at Rs 1.5 to make the most of the current strength in the counter. 

What's driving the ITC stock higher?

ITC shares: The Budget 2023 impact  

ITC share price: Historical performance

ITC shares have risen 18 per cent so far in 2023, a period in which the Nifty50 headline index has declined three per cent. 

As of Tuesday, the ITC stock has rewarded investors with a return of 47 per cent in one year, sharply outperforming the 50-scrip market benchmark, which has remained flat. 

Here's how ITC shares have performed over the past five years: 

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