Know The First Six Names As ITC Becomes The 7th Company To Cross Rs 6 Lakh Crore Market Cap

ITC’s shares have exploded by 48% so far this year, making it the fifth Indian listed business to exceed the Rs 6 lakh crore market capitalization milestone for the first time. ITC stock reached a new high of Rs 491 per share at the day’s end on Thursday, up more than 2% from the day’s prior closing of Rs 478.

The other six businesses to reach this milestone are Reliance Industries, Tata Consultancy Services, HDFC Bank, ICICI Bank, Hindustan Unilever, and Infosys.

ITC has performed well in each of its business sectors, including the tobacco, FMCG, paper, and hotel industries. Investors consider ITC to be a top investment choice because to its continuous dividend distributions and dependable cash flow, according to a Moneycontrol survey.

Its cigarette volume had double-digit increase and good operational efficiency, and its hotel division also performed remarkably well, helping to significantly boost profitability.

The taxes (GST & Excise) on cigarettes has been mostly steady over the last five years. Furthermore, according to an expert who was mentioned by Moneycontrol, the deployment of deterrent measures against illegal and contraband cigarettes has led to a considerable volume rise of almost 19% in FY23.

“In our base scenario, we anticipate cigarette EBIT to expand by around 10% annually during FY23 to FY25E and FMCG sales to increase by about 12%. Over the period of FY23–25E, cigarette margins are anticipated to grow by 120 bps as higher consumer prices are predicted to more than balance tax increases. In a letter to investors, Jefferies India stated: “We value the ITC tobacco business at 27x Mar-25 earnings, new FMCG at 5x Mar-25 sales, Agri and paperboard businesses at 15x Mar-25 EPS, and hotels at 18x Mar-25 EV/Ebitda.