The shares of ITC, a company involved in FMCG, hotel and cigarette business, have been on a rise for the last one year. ITC’s stock has increased by 74 per cent in a year, due to which there is doubt among investors whether to buy or not to buy this stock. Brokerage firm MK Global Financial Services has predicted that ITC shares will continue to rise. According to technical analysts, ITC should book some profits now and then buy more and more shares at lower prices. After such a spurt in ITC, now time wise correction can come.
If we look at the performance of ITC shares in the last 14 years, this stock has beaten the benchmark Sensex 8 out of 14 times. ITC is one of the top gainers among the 30 Sensex stocks this year. Still it looks most attractive and can be bought for medium to long term. The company has registered all round growth in all the segments.
The BSE FMCG index has gained 39 per cent in the last one year, while ITC’s share has risen 72 per cent. The benchmark Sensex has gained 22 per cent in a year. ITC shares have underperformed from 2019 to 2021. But then in 2022, this stock beat the Sensex by a huge margin. So far in the year 2023, ITC’s share has increased by 37 percent while the benchmark Sensex has increased by 4 percent. Analysts and brokerages believe that there is still more upside to the stock.
In which year ITC gave how much return?
If you look at the performance of ITC shares and Sensex in the last few years, it will be clear that how strong ITC is performing. In 2010, the ITC stock gained 39 per cent while the Sensex gained 17.40 per cent. In 2011, ITC rose 15 per cent while Sensex fell 24 per cent. Thereafter, in 2012, ITC gained 42 per cent but Sensex gained 25 per cent. In 2013, the Sensex rose by 9 per cent, but the ITC rose by 14 per cent.
In 2014 and 2015, ITC underperformed the Sensex. Again in 2026, ITC’s stock rose 10 per cent, against a two per cent rise in the Sensex. Sensex has outperformed in 2017, 2019, 2020, 2021, but in 2022 and 2023, ITC has outperformed Sensex by giving returns of 52% and 36% respectively.
ITC reported a 22.7 percent year-on-year growth in its net profit for the fourth quarter of FY2023, at Rs 5225 crore. The company’s income from operations increased by 7.3 percent to Rs 19,058 crore. Cigarette revenue grew by 13.7 percent during the quarter.
