ITC shares rose after domestic brokerage firm Motilal Oswal Financial Services (MOSL) upgraded its rating
ITC shares rose after domestic brokerage firm Motilal Oswal Financial Services (MOSL) upgraded its rating on the stock. What should investors do now?
- Last Update:16 June 2022, 11:41 AM IST
- What should I follow:
ITC shares were up 1.4 per cent at Rs 267.10 on the BSE in Thursday trade after domestic brokerage firm Motilal Oswal Financial Services (MOSL) upgraded its rating on the stock to ‘buy’ and target price of Rs 335 per share. According to Motilal Oswal, better-than-expected demand improvement, a good margin outlook on cigarettes, sales momentum in the FMCG business, less drag from the hotel business and better capital allocation in recent years have led to the upgrade.
“A stable tax environment for cigarettes in recent years has allowed ITC to check price hikes to avoid demand disruptions. We expect this trend to continue and result in improved cigarette volumes and earnings visibility in the medium term. The breadth of ITC’s FMCG product portfolio gives it an advantage in a rapidly changing demand environment. Its leadership position in some categories gives it pricing power to offset incremental input cost pressures in other categories, where pricing power is not as strong,” it said.
ITC Share Price History
Thus far in the calendar year 2022 (CY22), ITC has outperformed the market after underperforming in the last three consecutive calendar years. In CY21, ITC had gained 4 per cent against a 22 per cent rally in the S&P BSE Sensex. In CY19 and CY20, the stock had lost 16 per cent and 12 per cent, respectively, as compared to a rise of 14 per cent and 16 per cent in the benchmark index, respectively. So far in CY22, ITC has outperformed the market with a rise of 23 per cent as compared to a fall of 9 per cent in the S&P BSE Sensex. Moreover, the stock has gained 28 per cent in one year, against a 1 per cent rise in the benchmark index.
read all breaking news , today’s fresh news watch top videos And live TV Here.