Shares of ITC hit a new 52-week high of Rs 299.50 per share today during the company’s Annual General Meeting (AGM). ITC stock opened today with an upward gap and set a new 52-week high within an hour of today’s open.

After hitting a 52-week low of Rs 204.35 on the NSE in February 2022, ITC shares have been on an uptrend, surging more than 45% in five months.

According to stock market experts, ITC has a diversified portfolio because of its forays into fast-moving consumer goods, hotels and cigarettes. With commodity prices falling, ITC is expected to meet customer expectations without raising prices. Apart from that, unlocking themes is also expected to help it increase foot traffic to its hotel business. They also said that the market is interested in the divestment of ITC, which is also positive for the stock market. However, there is no sign of an official announcement (either by the government or ITC itself).

Commenting on the reasons for the surge in ITC’s share price, GCL Securities CEO Ravisinghal said: “It is expected that ITC’s FMCG business will benefit from a correction in commodity prices as it is expected to allow the company to satisfy customer needs. Demand. Customer needs. Customers. Expect higher product prices. ITC is also in the hotel business. There is no sign of any increase in cigarette taxes, which are already at their highest levels.”

Ravi Singhal of GCL Securities added that the stock has also benefited from doubts as the market is flooded with speculation that GoI may announce divestment from ITC soon. However, neither the Indian government nor any ITC officials commented. Neither side has dropped any hints in this regard. Singhal advises investors to forgo this exit trigger when making any investment decision in ITC stock. He said ITC shares could rise to the Rs 340 level soon. Those who own this stock in their portfolio are advised to hold a trailing stop counter at Rs 265, while new buyers can buy the stock to current levels at Rs 275 with a stop loss of Rs 265.

At ITC’s annual general meeting today, ITC Chairman and Managing Director Sanjiv Puri said: “The past year has been marked by heightened volatility in the operating business environment, especially in the first half of the year. Despite these challenges and inflation headwinds, your Total revenue rose 22.7% to over Rs 59,000 crore, while EBITDA rose 22% to nearly Rs 19,000 crore. Despite recent challenges, your company is indeed encouraging. While inflation remains a key monitorable factor, Continued strong growth across all business areas. As a valued shareholder, you will also be proud of several milestones your company has achieved on its sustainable journey towards inclusive growth.”

Highlighting the fundamentals on which ITC can attract investors, Sanjiv Puri said, “(ITC) has built and nurtured a portfolio of 25 world-class Indian brands in a short time with a vision to create and maintain greater value. ITC Today is India’s largest FMCG brand incubator, building competitive and inclusive value chains across wheat, potatoes, fruits and vegetables, dairy, aquaculture and forestry.”

ITC CMD added that the company’s intervention in the newer FMCG business resulted in a strong 25% revenue growth in the last two years of the pandemic, reaching almost Rs 16,000 crore in FY22. Despite facing unprecedented inflation headwinds, ITC maintained its EBITDA margin last year and improved it by 650bps over the past five years. As part of the ITC Next strategy, the FMCG business continues to create a structural competitive advantage and improve profitability through several interventions.