ADVERTISEMENT
Daily Expert News
No Result
View All Result
Monday, March 20, 2023
  • Home
  • World
  • Economy
  • Business
  • Markets
  • Arts & Culture
  • Education & Career
  • India
  • Politics
  • Top Stories
Daily Expert News
  • Home
  • World
  • Economy
  • Business
  • Markets
  • Arts & Culture
  • Education & Career
  • India
  • Politics
  • Top Stories
No Result
View All Result
Daily Expert News
No Result
View All Result
  • Home
  • World
  • Economy
  • Business
  • Markets
  • Arts & Culture
  • Education & Career
  • India
  • Politics
  • Top Stories
ADVERTISEMENT
Home Economy

ITC is up 14% in a month, up from 25% so far in 2022. What is driving the FMCG stock rally?

by Nick Erickson
April 12, 2022
in Economy
Reading Time: 3 mins read
130 3
0
ITC is up 14% in a month, up from 25% so far in 2022. What is driving the FMCG stock rally?
152
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter
ADVERTISEMENT


ITC stock rally: Shares of ITC hit a two-year high of Rs 273.10, up nearly 2 percent on the BSE on Monday in an otherwise weak market. The stock is up 6 percent in the past two sessions in anticipation of strong gains from improved cigarette volumes.

The share price of the major fast-moving consumer goods (FMCG) cigarettes traded at its highest level since February 2021. The price of ITC’s share has skyrocketed from Rs 208.50 (closing price on NSE on February 24, 2021) to Rs 273 ,15 today. During this rally, ITC shares climbed to a fresh new 52-week high, giving another break on the technical chart at Rs 263 apiece. According to stock market experts, the stock is in a bull trend and now has strong support at Rs 255 levels.

In calendar year 2022, ITC has so far outperformed the market with a 25 percent increase, compared to a 1.6 percent rise in the S&P BSE Sensex. It had previously reached a record high of Rs 353 on July 3, 2017.

Reasons behind the huge rally

ITC is better positioned than its competitors with improved cigarette performance and strong revenue visibility. Analysts expect ITC to report a relatively stronger quarter, with improvement in cigarettes and other divisions and less margin pressure compared to FMCG peers.

Analysts at Emkay Global Financial Services estimate a stable performance of cigarettes with a sales/EBIT growth of 9 percent/10 percent. FMCG sales growth will be 9 percent, while margins will remain flat year-over-year.

“We estimate strong performance in paper and agri with 11 percent/38 percent EBIT growth and break-even EBIT for hotels. After-tax profit growth is lower at 8 percent due to lower other income and a higher effective tax rate (ETR),” the brokerage said in a preview of the fourth quarter.

ADVERTISEMENT

The conflict between Russia and Ukraine has caused wheat prices to soar, benefiting ITC’s agricultural division, which exports wheat. For the quarter to December, the agricultural division contributed just over a quarter of ITC’s revenue, with revenue growth nearly doubling from year-ago levels and segment profit growth of 23%.

ADVERTISEMENT

Lifting Covid restrictions led to increased mobility and travel. This bodes well for ITC’s hotel division, which suffered significantly from lockdowns and reduced mobility during the pandemic. The opening of educational institutions also means good news for the company’s stationery store.

ADVERTISEMENT

The investigative report from brokerage firm Edelweiss Wealth has also given a ‘buy’ label to ITC shares, expecting the shares to rise to ₹450 each over the long term.

About fundamental factors that could fuel the price increase of the ITC stock; the wealth research report said, “We expect cigarette volume to rebound at a CAGR of 5 percent during FY22-24E, from a CAGR of -1 percent during FY11-21; FMCG’s EBITDA margin to scale to higher single digits; and revitalize the hotel, carton and agricultural commodities businesses, leading to a CAGR of 12 percent in FY22-24E, up from just 7 percent in the past five years.”

Marking of the bull trend visible in ITC stock price chart pattern; Edelweiss Wealth’s research report said: “A strong upward movement in prices on the ITC/FMCG ratio chart suggests a strong outperformance of the stock in the sector. Prices on the ratio chart suggest a base formation indicating the start of a strong outperformance Probable formation of an inverted head and shoulder pattern on the weekly charts and an analysis of the time series on the quarterly chart indicate a trend change and revival of the super bull cycle.” The report then added that ratio chart to a P&F platform indicating strong core building that has been underway for two years.

Disclaimer:Disclaimer: The expert opinions and investment tips contained in this News18.com report are their own and not those of the website or its management. Users are advised to contact certified experts before making any investment decisions.

Read all the latest news, breaking news and IPL 2022 Live Updates here.

Tags: DailyExpertNewsdrivingFMCGITCmonthRallystock

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe
ADVERTISEMENT

Related Posts

Income tax FY 2022-23: Key things to keep in mind when filing ITR
Tax News

Income tax FY 2022-23: Key things to keep in mind when filing ITR

March 20, 2023
Zee Entertainment Sinks More Than 14% After NCLT Admits IBC Pleas From IndusInd; Details
Economy

Why Sensex, Nifty, Fall Even After Credit Suisse Bailout?

March 20, 2023
Rail Vikas Nigam Shares Jump 3% on Winning Rs 1,088-cr Railway Order; Should you invest?
Economy

Rail Vikas Nigam Shares Jump 3% on Winning Rs 1,088-cr Railway Order; Should you invest?

March 20, 2023
HAL shares trade lower after going ex-dividend; Key details investors need to know
Economy

HAL shares trade lower after going ex-dividend; Key details investors need to know

March 20, 2023
Stocks to watch: Delhivery, Vedanta, NTPC, Vodafone Idea, Power Grid and others
Economy

Stock Updates: Sensex Tanks 400pts, Nifty50 below 17K; All sectors in red

March 20, 2023
Stocks to watch: Bharti Airtel, SpiceJet, SAIL, Vodafone Idea, Wipro and others
Economy

Stocks to watch: Equitas SFB, Delhivery, BPCL, HDFC, Tata Motors, Adani Ent and others

March 20, 2023
ADVERTISEMENT
  • Trending
  • Comments
  • Latest
This optical illusion has a revelation about your brain and eyes

This optical illusion has a revelation about your brain and eyes

June 6, 2022
NDTV Coronavirus

Viral video: Chinese woman pinned down, Covid test carried out by force

May 5, 2022
NDTV News

TGIF Mood: Video of Bear Cub Dancing in the Forest Melts 2.5 Million Hearts

June 3, 2022
Hundreds In Sarees At UK

Hundreds of sarees at Britain’s Royal Ascot Horse Race to help Indian weavers

June 16, 2022
The shock of chopping up a Chanel bag

The shock of chopping up a Chanel bag

1
NDTV News

Watch: Researchers Discover the World’s Largest Factory in Australia

1
Skyrocketing global fuel prices threaten livelihoods and social stability

Skyrocketing global fuel prices threaten livelihoods and social stability

1
No Guns, No Dragons: Her Video Games Capture Private Moments

No Guns, No Dragons: Her Video Games Capture Private Moments

1
Finland Tops World Happiness Report, India

Finland tops world happiness report, India’s ranking is…

March 20, 2023
Watch: Australia Star Meg Lanning does the iconic Shah Rukh Khan pose. Jemimah Rodrigues Can't Keep Calm | Cricket news

Watch: Australia Star Meg Lanning does the iconic Shah Rukh Khan pose. Jemimah Rodrigues Can’t Keep Calm | Cricket news

March 20, 2023
Exposing the truth about Botox: what you need to know

Exposing the truth about Botox: what you need to know

March 20, 2023
Latest news on the banking crisis and world markets | CNN affairs

Latest news on the banking crisis and world markets | DailyExpertNews affairs

March 20, 2023
ADVERTISEMENT

Recent News

Finland Tops World Happiness Report, India

Finland tops world happiness report, India’s ranking is…

March 20, 2023
Watch: Australia Star Meg Lanning does the iconic Shah Rukh Khan pose. Jemimah Rodrigues Can't Keep Calm | Cricket news

Watch: Australia Star Meg Lanning does the iconic Shah Rukh Khan pose. Jemimah Rodrigues Can’t Keep Calm | Cricket news

March 20, 2023

Categories

  • Africa
  • Americas
  • art-design
  • Arts
  • Arts & Culture
  • Asia Pacific
  • Astrology News
  • books
  • Books News
  • Business
  • Cricket
  • Cryptocurrency
  • Dance
  • Dining and Wine
  • Economy
  • Education & Career
  • Entertainment
  • Europe
  • Fashion
  • Food
  • Football
  • Gadget
  • Gaming
  • Golf
  • Health
  • Hot News
  • India
  • Indians Abroad
  • Lifestyle
  • Markets
  • Middle East
  • Most Shared
  • Motorsport
  • Movie
  • Music
  • New York
  • Opinion
  • Politics
  • press release
  • Real Estate
  • Review
  • Science & Space
  • Sports
  • Sunday Book Review
  • Tax News
  • Technology
  • Television
  • Tennis
  • Theater
  • Top Movie Reviews
  • Top Stories
  • Travel
  • Uncategorized
  • Web Series
  • World

Site Navigation

  • Home
  • Advertisement
  • Contact Us
  • Privacy & Policy
  • Other Links

We bring you the Breaking News,Latest Stories,World News, Business News, Political News, Technology News, Science News, Entertainment News, Sports News, Opinion News and much more from all over the world

©Copyright DailyExpertNews 2023

No Result
View All Result
  • Contact Us
  • Home
  • Top Stories
  • World
  • Economy
  • Business
  • Opinion
  • Markets
  • India
  • Education & Career
  • Arts
  • Advertisement
  • Tax News
  • Markets

©Copyright DailyExpertNews 2023

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?