ITC the most valuable FMCG stock of India
ITC Ltd., Asia’s largest cigarette maker, is expected to restore its status as India’s most valuable fast-moving consumer goods company after dethroning Hindustan Unilever Ltd.
ITC, the most valuable FMCG stock:
The firm, which mostly sells cigarettes but also has interests in hotels, paper, and consumer staples, saw its intraday worth reach 6.1 trillion rupees ($74 billion) for the first time ever on Monday, topping Hindustan Unilever’s 6.09 trillion rupees. The cigarette company has risen more than 70% last year, beating all other Nifty 50 stocks.
Investors prefer it over Hindustan Unilever because of the earnings projection. While HUL is still suffering from anemic post-pandemic recovery in rural Indian sales, ITC’s diverse business holdings helped grow earnings per share by roughly 30% in the year ended March.
“In the short term, ITC will undoubtedly outperform HUL,” said Sachin Bobade, vice president of the consumer sector at Dolat Capital Market Ltd. “There is still juice in ITC, primarily because its cigarette business faces no major headwinds.”
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