ITC Stock Surges 2% as Core Business Grows

Business by 2FIRSTS.ai

Jul.10.2024

ITC Stock Surges 2% as Core Business Grows

ITC stock reaches 5-month high, up 2% in Tuesday trading on stable growth expectations in cigarette and FMCG sectors.

According to a report by Business Standard, the stock of ITC (an Indian conglomerate with most of its revenue coming from tobacco products) rose by 2% in Tuesday's trading session, reaching a five-month high of 454.05 Indian Rupees (approximately $5.44). The increase is attributed to expectations of stable growth in its cigarette and fast-moving consumer goods (FMCG) businesses.

Since last week, ITC's stock price has risen by 7%, exceeding the 6% increase of the BSE Sensex, India's Mumbai sensitive index. Currently, the company's stocks are trading at their highest point since January 29, 2024; it is reported that the company reached its peak on July 24, 2023 at 499.60 rupees (approximately 5.98 US dollars).

In the fiscal years of 2023 and 2024, ITC's cigarette business saw a recovery, with cigarette sales volumes remaining largely stable compared to its highest sales volume in fiscal year 2013. Stable tax measures and various government initiatives to combat illegal cigarettes have supported the legal cigarette market.

According to Motilal Oswal Financial Services, an Indian financial services company, based on the stable macroeconomic environment and tax conditions, it is predicted that for the fiscal years 2024-2026, ITC's revenue will have a compound annual growth rate of 6.5%, cigarette sales volume will have a compound annual growth rate of 3.5%, and Earnings before Interest and Taxes (Ebit) will increase by 6.5%.

References:

[1] ITC stock extends rally into 5th day, hits 5-month high; up 7% in 1 week

Also Read:

[1] Indonesia Government Targets Tobacco Control Through Tax Adjustment

[2] South Korean Tobacco Company KT&G to Halt "ESSE Change Icefall"

[3] EU Tobacco Policy: Balancing Prevention and Innovation in Smoking

[4] Smoking epidemic in Tunisia: Urgent need for action

#Traditional tobacco #Asia #India #Market

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