ITC is one of the most reputed brands in India. Known for its portfolio of brands comprising Will Lifestyle, Classmate, Vivel, Gold Flake, Aashirvaad, Sunfeast, Bingo, Paperkraft and Fiama among several others, ITC is a name to reckon in FMCG category in India. It also runs a chain of luxury, business and leisure hotels and resorts in India.
The company started its operation in 1910 under the name Imperial Tobacco Co. of India since it manufactured and distributed cigarettes, smoking tobaccos and cigarette tissue papers. It was converted into a public company in 1954. Sixteen years later, the company renamed itself to India Tobacco Co. Ltd and issued right shares and equity shares for the first time. It finally rebranded to its current name ITC Ltd. in 1974.
ITC share price performance has witnessed a phenomenal growth in the last decade. From 16 in 2001, it has steadily risen to reach the mark of Rs300 in 2018. In the last five years, the prices have fluctuated but remained above Rs200 throughout. After the company reported a net profit of Rs29.33 billion in line with estimated figures for Q4FY18, ITC share price moved higher by 2.5%.
In May this year, ITC suffered a blowback when its competitor Hindustan Unilever (HUL) surpassed its market capitalization after a gap of more than ten years. While HUL prices rose by 10% in April-May 2018, ITC share price appreciated by 5%.
Given that FMCG sector is the 4th largest sector in the Indian economy and expected to grow at CAGR of around 28% till 2020, the companies operating in this space have a bright future ahead. ITC still stands tall and proud in FMCG sector and dominating the Indian cigarette market with around 75% market share.
While ITC stock hasn’t moved up much in the last two years, it is still one of the cheapest valuable shares to buy. It has grown 5-6 times, registered stable sales and earnings and also maintained ROE of 29% and dividend payout of 60% in the past ten years, all of which are very impressive.
ITC is one of the profitable shares for long-term investment.
Comments
Post a Comment