More than 150 percent rise in three years, is this stock a good option for investment? read here

By Cross Talk India Team On Oct 31, 2023

ITC Stock News: ITC company is a big name in Indian industry. ITC is associated with many types of businesses. It has a significant stake in business including AAMCG, hotel, paper, packaging, agriculture. ITC has been performing well for the last few years. This is the reason why the investors of the company are getting very good profits from its shares. In such a situation, are ITC shares capable of giving better returns with its financial scale? Read details in the article below.

Here is the weekly chart of ITC share

According to the data, ITC shares were around Rs 170 in the year 2020, which increased to more than Rs 450 in the year 2023. In this way, an increase of more than 150 percent has been seen. This weekly chart of ITC shows that its shares are going in a good direction. High levels are visible in the chart. In such a situation, it indicates that it will continue to rise further.

This is fundamental analysis

Its recent figures show that its balance sheet is performing in a strong manner. There is good cash flow in the company. Besides, the financial track record of the company also looks better. Apart from this, the company is currently debt free. The company has a good return on equity (ROE) track record. The company is giving good dividend payout with 98% rate.

Factors increasing the progress of ITC

ITC has many factors which indicate that it will grow further in the times to come. The first factor in this is the company’s good hold in the FMCG sector, the company has such products in the market, which remain quite trustworthy among the common people. Besides, their sales are also good. At the same time, ITC is now working towards strengthening its hold in the e-commerce sector. The company is working towards selling its FMCG products through e-commerce platform. Also the third factor is, the company is growing its hotel business. The company is also likely to benefit from the growing tourism industry in the country.

ITC is benefiting from government initiative

The Government of India has taken several initiatives to promote the growth of the FMCG sector. These include Make in India programme, Pradhan Mantri Garib Kalyan Yojana and Pradhan Mantri Jan Dhan Yojana. These initiatives have boosted demand for FMCG products and ITC remains well positioned to benefit from this increased demand.

impact on indian economy

It is known that ITC has contributed significantly to the Indian economy. The added value of ITC has grown continuously at an average annual rate of more than 12% over the last ten years, reaching more than Rs. This amount of Rs 68000 crore is approximately 1.1% of the total value added by the entire industrial sector of the economy.

Q1 FY24 financial results

ITC reports strong financial results for Q1FY2023-24. The company’s gross revenue increased by 8.9%, EBITDA increased by 9.5% and profit after tax increased by 10.3%. The company’s FMCG business has continued to perform well. Segment revenue increased 8.3% year-on-year on a higher basis. The company’s hotel business has also performed well. Segment revenue and PBIT increased 21% and 50%, respectively, on a higher base.

These are some of the key factors that make ITC a good stock

Strong brand portfolio in FMCG segment
Expanding presence in e-commerce sector
investment in hotel business
beneficiaries of government initiatives
Important contributor to Indian economy

Is ITC stock worth investing in?

ITC is involved in various sectors like FMCG, hotels, paperboard and packaging, agribusiness and information technology. It also represents an impressive growth for investors looking for potential opportunities within the Indian economy. These important reasons make it worth considering. Remember, though, it’s essential to do your research and consider your financial goals before investing.

Disclaimer: This information is provided for informational purposes only. It is important to note that investing in the market or any business idea involves market risks. Before investing money as an investor/owner/partner, always consult an expert. DNP News Network Private Limited never advises to invest money on stocks or any specific business idea. We will not be liable for any financial loss.

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