Shares of the country's largest cigarette maker, ITC, rose as much as 8 per cent, the biggest single-day gain since March 20, 2020, to hit an intraday high of Rs 233.30 on the BSE on the back of heavy trading volumes. Over 60 lakh ITC shares changed hands on the BSE compared to an average of 10.30 lakh shares traded daily in the past two weeks, data from BSE showed. On the National Stock Exchange a total of 8.92 crore shares were traded within first two hours of trading, With today's surge ITC's free float market capitalization crossed Rs 2 lakh crore mark. (Track ITC share price here)
"ITC stock gave a break out on the charts after a long period of consolidation and sideways movement. The stock can go up Rs 250-265 in the short term. Investors who have long position in the stock should stay invested. On the downside Rs 215 is strong support zone for ITC," Sumeet Bagadia, associate director at Choice Broking told NDTV over phone.
"Traders who deal in the derivative segment can buy ITC Rs 230 strike price call option around Rs 7 with stop loss at Rs 4 for target of Rs 11-14," Mr Bagadia added.
IDBI Capital has a buy rating on ITC stock for target price of Rs 275 implying a price-to-equity (P/E) multiple of 20 times on FY23 earnings per share.
"ITC's revenue grew 37 per cent year-on-year (YoY) on a lower base. Revenue from cigarettes grew 33 per cent (YoY) while declined 13 per cent (QoQ) due to second wave led disruptions. Revenue from FMCG - Other segment grew 19 per cent (YoY) on comparable basis driven by strong demand for essentials. E-commerce now contributes 8 per cent to FMCG Other segment's total revenue. Agri Business reported revenue growth of 9 per cent (YoY) (4 per cent (YoY in 1QFY21) driven by zero-disruption in supplies to key customers despite significant operational challenge. Paperboard and packaging also reported healthy top line growth at 9 per cent (YoY). Hotel segment was most impacted (-56 per cent QoQ) due to restrictions on mobility," IDBI Capital said in a report.
ITC shares have so far this year advanced 11.62 per cent, underperforming the Sensex which has jumped over 20 per cent.
As of 11:14 am, ITC was top gainer in the Nifty 50 and Sensex basket of shares. The stock traded 5.95 per cent higher at Rs 229. ITC alone contributed 115 points towards the Sensex.