ITC: Zero of 2021 now hero in volatile stock market

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By S Jha

New Delhi, September 17: The share price of ITC was subjected to much of ridicule all throughout 2021 and before. The FMCG behemoth was snoozing to heavily for the discomforts of the investors who enviously saw other stocks galloping.

However, ITC share price is marching upwards steadily this year, while not being unaffected by the volatility in the global equity market. Kolkata-headquartered corporate giant is being claimed by the brokers and technical chartists to be on a firm upward trajectory in the stock market.

On February 24 this year, the share price of ITC had bottomed out Rs 208.50. But in the next seven months, the cigarette selling company with a rich bouquet of fast moving consumer goods logged in over 50 per cent gains in the stock market.

The ITC share price was trading at Rs 331 on Friday at the close of the trading session.

The financials seem to be backing the share price movement of ITC.

The June quarter result of the company has been stellar, being the best in several quarters. The financials of the company suggest that the share price movement is backed by the improvements in the performance of the company.

Against Rs 16,556 crore of sales in the March quarter, ITC logged in the number of Rs 18,439 crores in the June quarter.

The operating profit that stood at Rs 5599 crores in the March quarter zoomed to Rs 6077 crores in the June quarter.

The earning per share also grew to Rs 3.56 in the June quarter from Rs 3.40 in the March quarter.

ITC is known to have a hidden jewel in the Bengaluru-headquartered ITC Infotech, which the company may list on the stock market in future.

The IT subsidiary of ITC is stated to be in the top league, offering the cutting edge technology solutions to the global clients.

Besides, ITC has also strengthened its market in the kitchen goods such as flour, packaged spices and so on.

ITC Hotels is also counting on rebound in tourism to improve its financials as fears of the Covid-19 subside.