NEW DELHI: FMCG giant ITC has now overtaken the market capitalisation of Infosys to become India’s sixth most valuable company on the stock exchanges. The cigarette-to-hotel conglomerate surpassed the market capitalisation of IT major Infosys on Monday after overtaking home finance lender HDFC Ltd on Friday.
ITC’s market capitalisation ranking improved two spots in three sessions as the share price hit a high of Rs 413.45 on Monday before closing the session at Rs 411.35. At the end of Monday’s trade, ITC’s m-cap stood at Rs 5.11 lakh crore while Infosys’ valuation stood at Rs 5.08 lakh crore. This feat is achieved by ITC after its share surged 59% in last one year. In 2023 so far, ITC shares are up 24%, the best performer in the benchmark Nifty50.
Shares of Infosys, on the other hand, is under tremendous pressure after its March quarter earning was below the street estimate. Infosys shares have tumbled 20% in calendar year 2023 so far, wiping about Rs 1.80 lakh crore off investors’ fortunes.
To become the country’s 5th most valuable company, ITC will need some gas as rival FMCG firm Hindustan Unilever (HUL) currently commands an m-cap of Rs 5.88 lakh crore. Most analysts believe that ITC shares will continue to rally as its different businesses are expected to perform better than peers. 95% of analysts tracking ITC shares on Bloomberg have a “buy” recommendation on the stock.
Brokerage firm CLSA maintained an Outperform rating on ITC with a target of Rs 430, citing improvement in growth visibility in cigarettes aided by stability in the tax structure. “The stock remains strong and long-term fundamentals are intact. Besides, strong dividend yield offers support to the stock,” CLSA said.