Earlier, Reliance Industries Ltd, Tata Consultancy Services Ltd, HDFC Bank, ICICI Bank, Hindustan Unilever, and Infosys Ltd have achieved this milestone. Shares of the Kolkata-based conglomerate rallied over 48 p.c thus far this yr.

ITC Ltd turned the seventh Indian listed firm to cross the Rs 6 lakh crore market cap mark for the primary time after its shares rallied over 48 p.c thus far this yr.

The inventory hit a file excessive of Rs 489 a share and gained as a lot as 2 p.c intraday. At 12.21 pm, the inventory was buying and selling at Rs 487 on BSE, up 1.8 p.c from its earlier shut.

Earlier, Reliance Industries, Tata Consultancy Services, HDFC Bank, ICICI Bank, Hindustan Unilever and Infosys achieved this milestone.

ITC’s spectacular efficiency throughout all its enterprise segments, together with cigarette, FMCG, paper and resorts made it a beautiful alternative for traders. Investors view ITC as a defensive possibility of their funding portfolios due to its secure money move and constant dividend payouts.

The firm’s robust operational efficiency, characterised by double-digit progress in cigarette quantity and a strong restoration from its resorts enterprise has added to its attractiveness from a elementary perspective. These constructive facets make ITC a compelling alternative for traders searching for dependable and regular returns, particularly throughout unsure financial circumstances.

Over the previous 5 years, the taxation (GST & Excise) on cigarettes has remained comparatively secure. Additionally, the implementation of deterrent measures towards illicit and contraband cigarettes has contributed to important quantity progress of roughly 19 p.c in FY23, analysts mentioned.

Investors have lengthy been involved concerning the resort enterprise’s excessive capital expenditure and subpar return profile within the case of ITC. Recently, the Chairman of ITC mentioned that the corporate is exploring different constructions for the resort enterprise. Although the ultimate final result is but to be decided, the corporate has been pursuing an ‘asset-right’ technique for ITC Hotels, which is the second-largest listed chain.

The ‘asset-right’ technique focuses on optimising the utilisation of capital by proudly owning fewer belongings straight and as a substitute emphasising administration contracts or different partnership fashions to increase the resort enterprise. By adopting this method, ITC goals to enhance its return on funding and mitigate the dangers related to heavy capital investments within the resort sector, analysts mentioned.

“In our base case, we forecast c.10 percent annual growth in Cigarette EBIT over FY23-25E and a c.12 percent growth in FMCG revenues. Cigarette margins are expected to expand by 120bps over FY23-25E as an increase in consumer prices should more than offset tax hikes. We use SOTP methodology to value the ITC cigarette business at 27x Mar-25 earnings, new FMCG at 5x Mar-25 sales, Agri and paperboard businesses at 15x Mar-25 EPS, and hotels at 18x Mar-25 EV/ Ebitda”, mentioned Jefferies India in a word to traders.