Shares of ITC have had a great year so far. The stock has gone up to hit record highs this year and has also managed to keep its fundamentals strong. The tobacco-to-soap giant also announced the much-anticipated demerger of its hotels business.

The Investment: With the stock price at ₹332.85 on January 2, 2023, an investment of ₹10,000 would have secured you approximately 30 shares. With today’s stock price at ₹450, your investment would now be worth approximately ₹13,500.

Background: ITC began the trading day on a positive note, following the announcement of its earnings for the quarter ending June. The company reported a consolidated net profit of ₹5,104.9 crore, marking a 16% increase from the ₹4,389.8 crore profit in the corresponding quarter of the previous year.

Despite a revenue decline of over 5% from ₹19,695.12 crore in the June quarter of 2022 to ₹18,639.48 crore this year, the company’s cigarette segment remained the primary revenue driver, contributing ₹8,355.66 crore, a 12% growth YoY.

Analyst Reactions:

CLSA emphasised the robust performance of ITC’s cigarette and FMCG segments, which compensated for challenges in the agri and paper sectors. JP Morgan highlighted the impressive FMCG segment performance, while Morgan Stanley noted that the company’s financials surpassed their expectations, indicating a promising outlook for the stock.

Price Action: As the market opened, ITC’s share price experienced a 0.49% rise, trading at ₹451.40.

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Disclaimer: Benzinga India doesn’t give financial advice. The above article is for educational purposes alone.

Editor’s Note: Artificial intelligence was used as a secondary aid in the writing of this story.