ITC shares touch all-time high, come within inches of Rs 400; what analysts suggest on cigarette-to-hotel conglomerates stock
ITC share price: The stock of the cigarettes-to-hotels conglomerate touched the Rs 398 apiece level for the first time ever. ITC shares finished higher by Rs 7.4 or 1.9 per cent at Rs 396.1 apiece on BSE.
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
In the Union Budget 2023-24, the government hiked the national calamity contingent duty (NCCD) on cigarettes — or taxes on cigarettes — by 16 per cent, marking the first increase since the Budget 2020. Analysts said the move would only impact a part of ITC's portfolio. Read more on what Budget 2023 announcements mean for ITC
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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