ITC surges 8%, hits seven-month high; inches towards 52-week high

Despite today's sharpest rally, the stock has under-performed the market gaining 28 per cent, as against a 50 per cent surge in the S&P BSE Sensex.

Shares of ITC hit a seven-month high of Rs 233.50, after rallying 8.1 per cent on the BSE in intra-day trade on Thursday, before closing 6.8 per cent higher at Rs 230.75. The stock is now trading at its highest level since February 2021. It had touched a 52-week high of Rs 239.15 on February 9, 2021. Yet, valuations remain attractive at 19.5 times trailing 12 months earnings compared to over 65 times for its peers.

While there have been expectations of an improvement in the company’s businesses, the up move in ITC on Thursday also comes on the back