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ITC steals limelight: Market valuation overtakes HDFC in this sustained surge.

On 21 April, ITC continued its uptrend for the third day in a row, breaching the 5.04 trillion intraday market capitalization mark and briefly outperforming HDFC Ltd in terms of value.

At 11:30 am ET, ITC and HDFC tied at a market capitalization of Rs 5.03 lakh crore. ITC’s stock was trading 1.15 percent higher at Rs 404.90 on the NSE, reflecting positive sentiment among investors about the company’s growth prospects. The fierce competition between ITC and HDFC in terms of market capitalization reflects the strong performance of both companies and their position as major players in the Indian market.

ITC, an Indian conglomerate with interests in tobacco, FMCG, hospitality and cartons, has recently made a mark in the business world. On 20 April, the company’s market capitalization crossed the Rs 5 trillion mark, making it the 11th Indian company to achieve the feat. The achievement is mainly driven by the company’s strong performance in the stock market, with its shares rising 21 percent since the beginning of the year.

Several Indian companies have achieved the milestone of crossing 5 trillion market capitalization, indicating their strong performance and growth potential. Reliance Industries, Tata Consultancy Services, HDFC Bank, Infosys, ICICI Bank, Hindustan Unilever, Life Insurance Corp of India, State Bank of India, HDFC and Bharti Airtel are among the companies that have achieved this feat.

These companies are leaders in their respective industries and have established themselves as key players in the global market. Their success can attribute to their ability to adapt to changing market conditions, focus on innovation and commit to long-term growth.

ITC, one of India’s leading conglomerates, has been witnessing a significant increase in its market capitalization recently, which is helping it bridge the gap with Infosys, India’s second-largest IT services company. As of now, Infosys has a market capitalization of Rs 5.07 trillion, which is slightly higher than that of ITC.

ITC’s remarkable performance in the stock market, with a rally of 110% in the last two years, can be attributed to the consistent financial performance of its cigarette, consumer goods and hotel businesses. Notably, its cigarette business showed exceptional volume growth of 14.5% year-on-year in FY22, with analysts estimating an additional growth of 18% in FY23.

ITC’s FMCG segment has also contributed significantly to the company’s overall growth, with its range of products gaining popularity among Indian consumers. The company’s focus on sustainability and green practices has helped it garner a loyal customer base, enabling it to meet the challenges posed by the COVID-19 pandemic.

ITC’s hotel business has also shown steady growth with a focus on premium and luxury hospitality offerings. The company has leveraged its experience in the hospitality sector to expand its operations across various locations in India and establish itself as a major player in the industry.

Ravi Singh, Head of Research, Share India, highlighted the positive trend of ITC technical setup on the daily chart, which indicates that investors can consider holding to reach the 420 level. Singh also noted that the stability of cigarette taxes, combined with constraints from law enforcement agencies, is allowing for continued improvement in volumes and is supporting the company’s growth prospects.

According to GCL Broking, ITC shares have the potential to reach Rs 470 in the next year, which is an upside estimate for the company. The firm also notes that ITC has outperformed Hindustan Unilever Limited (HUL) significantly, with 52 percent returns compared to HUL’s 19 percent returns over the past year.

GCL Broking’s forecast also highlights the importance of a well-diversified portfolio and a focus on long-term growth for continued success in the stock market. As investors increasingly prioritize companies that demonstrate a commitment to sustainability and ethical business practices, companies such as ITC that prioritize these values are likely to experience continued growth and success in the future.

Market expectations suggest that ITC’s revenue for Q4 FY23 will grow by 9.3% yoy to Rs 16,972 crore, with net profit up 17% yoy to Rs 4,907 crore. These projections indicate continued growth and success for the company based on the company’s strong financial performance in recent years.

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