ITC hits 52-week high despite bloodbath on the bourses; heres why!

ITC is the largest cigarette manufacturer in the country. ITC operates in five business segments i.e. FMCG cigarettes, FMCG others, hotels, paperboards, paper & packaging, and Agribusiness.

On Thursday, when the global, as well as the leading domestic indices, witnessed a bloodbath amid high inflation, the Russia-Ukraine war, and COVID lockdowns in China, ITC Ltd was the only stock on BSE Sensex that traded in green! Not only this, but the company’s shares also hit a fresh 52-week high share value of Rs 279.15.   

The company’s shares soared 3.53 per cent to Rs 275.90 on BSE as it announced its Quarterly Results on Wednesday, May 18, 2022.  

Considering the financial performance of the company, ITC Ltd recorded net sales and other operating income of Rs 17,754.02 crore thereby, posting a growth of 15.25 per cent from Rs 15,404.37 crore registered in Q4FY21. On the other hand, the operating profit was recorded at Rs 6,098.02 crore in Q4FY22 as compared to an operating profit of Rs 5,450.61 crore in Q4FY21. Q4FY22 recorded a net profit of Rs 4,259.68 crore in comparison with the net profit of Rs 3,816.84 crore in the same quarter of the previous year, advancing by 11.6 per cent.     

Considering the yearly performance, the net profit of ITC Ltd surged 15.65 per cent to Rs 15,485.65 crore as against Rs 13,389.80 crore during the previous year, ending March 2021. On the other hand, net sales rose by 22.67 per cent to Rs 65,204.96 crore as against Rs 53,155.12 crore during the previous year, ending March 2021.    

The company’s board recommended a final dividend of Rs 6.25 per ordinary share of Rs 1 each for the financial year ended March 31, 2022, subject to declaration by the members at the 111th annual general meeting (AGM) of the company convened for July 20, 2022; the final dividend, if declared, will be paid between July 22, 2022, and July 26, 2022, to those members entitled thereto. The above final dividend is in addition to the interim dividend of Rs 5.25 per ordinary share declared by the board in February 2022.  

Established in 1910, ITC is the largest cigarette manufacturer and seller in the country. ITC operates in five business segments at present i.e. FMCG cigarettes, FMCG others, hotels, paperboards, paper & packaging, and Agribusiness.   

Considering its commendable growth and bright future outlook, we suggest keeping a close eye on this scrip for the upcoming sessions.