INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Riding on strong Q1 results, ITC on Friday surged over 5 per cent to pip Hindustan Unilever (HUL) as the most valuable FMCG
It also became the fourth most valued listed company, data suggested.
The scrip rose 5.20 per cent to hit a 52-week high of Rs 302.10 on
At this level, the m-cap of the FMCG major stood at Rs 3.8 lakh crore, higher than HUL's Rs 3.6 lakh crore.
Brokerages noted that ITC
stock is trading at 50 per cent discount to HUL's valuations.
They largely are positive to neutral on the scrip
CLSA has a price target of Rs 390 on the stock
Citi (Rs 350), BNP Paribas (Rs 347), Prabhudas Lilladher (Rs 346) and IDFC Securities (338) have buy or buy/outperform view on the stock
This 50 per cent discount is at the higher end and during good times, it has shrunk to 20 per cent
However, with cigarette still contributing ~85% to EBIT, reliance on regulated business remains high
cigarette maker on Thursday posted 10.08 per cent jump in profit at Rs 2,818.68 crore for the quarter ended June 2018
Its profit was Rs 2,560.50 crore in the same quarter last year
An ETNow poll had predicted net profit of Rs 2,805 core for the quarter under review.
