ITC Ltd becomes the seventh Indian listed firm to cross Rs 6 lakh crore market capitalisation mark for the first time after its shares gained over 48% so far this year.

The stock hit a 52-week high of Rs 489 apiece and gained as much as 2.7% today.

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

ITC’s impressive performance across all its business segments, including FMCG, hotels, paper, and cigarettes, made it an attractive choice for investors. Due to its stable cash flow and consistent dividend payouts, investors view ITC as a defensive option in their investment.

ITC Ltd strong operational performance, characterized by its robust hotel business recovery and double-digit cigarette volume growth, has improved its attractiveness. These positive aspects make it a compelling choice for investors seeking reliable and steady returns, especially during these uncertain economic times.

The taxation on cigarettes has remained relatively stable for the past five years. Moreover, implementing measures against contraband cigarettes has contributed significantly to the volume growth of approximately 19% in FY24.

The investors have been concerned about the company’s hotel business’s high capital expenditure and nominal returns.

The chairman of ITC commented the company is looking for alternative structures for the hotel business, and the company has been pursuing an ‘asset right’ strategy for ITC hotels.

The asset right strategy focuses on owning fewer assets directly and emphasizing more on management contracts or other partnership models to expand the hotel business.