ITC’s market capitalization surges, outpacing Infosys and HDFC Ltd
ITC, one of India’s largest FMCG conglomerates, has surpassed IT major Infosys to become the country’s sixth most valuable company on the stock exchanges. With a market capitalization of Rs 5.11 lakh crore, ITC overtook Infosys on Monday after overtaking HDFC Ltd on Friday. This achievement comes after ITC’s share price rose 59% over the past year and 24% so far in 2023, making it the best performer in the benchmark Nifty50. Meanwhile, Infosys shares have fallen by 20% in 2023, wiping off Rs 1.80 lakh crore of investors’ fortunes, following its March quarter earnings below street estimates.
ITC’s growth potential sets it on course to overtake Hindustan Unilever
To become the country’s fifth most valuable company, ITC will need to outperform rival FMCG firm Hindustan Unilever (HUL), which currently commands an m-cap of Rs 5.88 lakh crore. However, most analysts are optimistic that ITC shares will continue to rally, as its various businesses are expected to perform better than its peers. Additionally, 95% of analysts tracking ITC shares on Bloomberg have a “buy” recommendation on the stock. CLSA, a brokerage firm, maintained an Outperform rating on ITC with a target of Rs 430, citing the improvement in growth visibility in cigarettes aided by stability in the tax structure. “The stock remains strong, and long-term fundamentals are intact. Besides, the strong dividend yield offers support to the stock,” CLSA said.
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