ITC Limited shares were up on Monday on the back of the incorporation of a new wholly-owned subsidiary dubbed ‘ITC Fibre Innovations Ltd‘.

What Happened? The diversified conglomerate business in an exchange filing on March 3 revealed that the subscribed share capital for ITC Fibre Innovations Ltd. would be ₹1 lakh.

While not a lot is known about this new subsidiary just yet, the large-cap company has received a push from brokerages over the past week. Both Axis Securities and Motilal Oswal issued ‘buy’ calls on the stock.

While Motilal Oswal has set the target price for the stock at ₹408, Axis Securities’ target price is set at ₹460, as the brokerage sees an upside potential of 22% from current prices.

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In the quarter that ended in December 2022, the company reported a consolidated total income of ₹18,299.95 crore, down 4% from last quarter’s total income of ₹19,062.68 crore and down 2.6% from last year’s same quarter total income of ₹18,787.72 crore. The tobacco sector giant also reported a net profit after tax of ₹5,070.09 crore in the latest quarter.

The company’s board also approved an interim dividend of ₹6 a share for the current financial year.

Price Action: ITC shares were trading 0.8% higher on Monday at ₹588.60 shortly after markets opened for trading.

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