Business Standard

ITC stock shines on improving growth outlook: Here are the key triggers

Steady cigarettes demand, rising agri exports, better prospects of hotels and paper businesses, low valuation and reasonable dividend yield key triggers


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Devangshu Datta
Tobacco major ITC has witnessed steady gains over the past month, rising over 18 per cent in an otherwise flat market. Given the uncertainties surrounding high inflation and the war in Ukraine, investors may have been considering ITC as a potential haven.

Positive factors for the stock are as follows: Tobacco has steady demand and ITC is a near-monopoly in the legal Indian cigarettes market -- although most Indian tobacco users prefer other forms of consumption. It has not seen any increase in tax for the second successive Budget.

The other divisions of the company include agri-products and an FMCG/personal

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First Published: Mar 28 2022 | 7:51 PM IST

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