FMCG major ITC dominated Thursday’s (October 3) session as multinational HSBC maintained its ‘buy’ stance on the stock. The brokerage also raised the target to Rs 580 from the earlier target of Rs 480, implying 12 percent gains from the previous period.
The brokerage holds that all four factors shaping our investment theory are well aligned, enhancing the risk/reward of FMCG stocks. The brokerage held that ITC’s stock is trading at a wide discount to its FMCG peers, a stable tobacco tax regime, and a formidable FMCG-Others are contributing to the attractiveness as the rest of the market remains volatile.
Downside risks include share price sensitivity to excessive tax shocks, worse-than-expected cigarette volume growth, and slowing or loss of market share in FMCG-Others.
The company in October in a filing announced that a wholly owned subsidiary has acquired 100 percent of the capital of Blazeclan Technologies. As a result, Blazeclan and its subsequent subsidiaries have become wholly-owned subsidiaries of the Company effective October 1, 2024.
ITC sales fee
ITC shares in the last one year have gained more than 12 percent. The stock amid sustained market gains made it hit a 52-week high last week.
