ITC hits 52-week high; rises 10% in four days

ITC rose 1.80% to Rs 280.60, extending its winning run to fourth consecutive trading session.

Shares of the FMCG company have rallied 10.45% in four trading sessions from its previous closing low of Rs 254.05 posted on 16 May 2022. The counter hit a 52 week high of Rs 282.30 in intraday today. The stock has zoomed nearly 40% from its 52-week low of Rs 200.85 recorded on 9 July 2021.

On the BSE, 12.67 lakh shares were traded in the counter so far compared with average daily volumes of 9.50 lakh shares in the past two weeks.

The counter saw demand after the FMCG company reported robust Q4 earnings on 18 May 2022. ITC's standalone net profit rose 11.81% to Rs 4,190.96 crore on 16.49% increase in net revenue to Rs 15,331.48 crore in Q4 FY22 over Q4 FY21. EBITDA improved by 16.8% to Rs 5,224 crore in Q4 FY22 from Rs 4,473 crore in Q4 FY21.

The company said it saw a robust broad-based recovery in cigarettes segment despite disruptions due to the third wave. Volumes surpass pre-pandemic levels, the firm said. It added that market is standing reinforced through focused portfolio/market interventions and agile execution.

Total FMCG segment revenue increased by 10.9% YoY to Rs 10585 crore during the period under review. In the FMCG segment, cigarettes revenue rose by 10% YoY to Rs 6443 crore while the revenue from other FMCG segment improved by 12.3% YoY to Rs 4142 crore during the quarter.

Hotel business revenue stood at Rs 390 crore (up 35.4% YoY), agri-business revenue was at Rs 4366 crore (up 29.6% YoY) and paperboards, paper & packaging revenues were at Rs 2183 crore (up 31.8% YoY) in the fourth quarter of FY22.

In last one month, the stock has moved nearly 8.13% higher outperforming the Nifty 50 index which declined 5.94% in the same period.

On the technical front, the stock's RSI (relative strength index) stood at 67.522. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock is trading above its 50 and 100 days simple moving average placed at 255.93 and 238.59 respectively. These levels will act as crucial support zones in near term.

ITC is a diversified conglomerate with businesses spanning fast moving consumer goods, hotels, paperboards and packaging, agri business and information technology.

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