Stock exchange sensitive index or Sensex serves as an important metric for the Indian stock market providing information about the performance of the top 30 stocks on BSE. The indicator helps investors identify the direction of stock market performance by including the performance of the top 30 actively traded stocks. The Sensex share price indicates how the stock market has performed in a certain period preferably a year. ITC, one of the leading Indian conglomerates, has been a star performer in the Sensex. Following is the ITC stock performance that investors must be aware of:
ITC and its businesses
ITC is a large Indian conglomerate that operates through its various lines of businesses like FMCG, cigarettes, hotels, paperboards, packaging, agriculture, etc. The company has recently demerged its hotel businesses to focus on other departments and businesses. Serving as the best-performing stock, ITC has been able to generate significant returns for its investors. Moreover, ITC’s stock is a blue-chip stock making it a perfect investment option for the long term.
ITC with its diversified business model makes significant contributions through its businesses like tobacco products and fast-moving consumer goods like food and personal care products. Moreover, it has been able to maintain a stable growth rate with a year-on-year increase in revenue and profits.
ITC stock performance
ITC stock is currently trading at ₹480 on the stock market. The current is significantly low from its 52-week high price of ₹528.5. The stock recently gained 2% from its previous closing price upon announcing a demerger from its hotel business. Despite the volatility in the Sensex due to the withdrawal of FII investments, the ITC stock price has remained stable. Moreover, the stock price has increased by 103%. 3 years offering stellar returns to the investors.
Strong quarterly results, stable dividend payout, and good volume in terms of revenue and profits are the aspects that have helped maintain the stock prices stable. With consistent returns, the company aims to deliver the same in the future as well based on a healthy business outlook. Moreover, according to the market sentiment, ITC remains one of the best stocks for long-term investment due to its dominance in the FMCG sector and future expansion plans. The top management at ITC has taken various decisions related to the demerger of its hotel business, reduction in dependency on tobacco products, and investment in various sustainable projects that can help improve the stock performance as well.
Conclusion
The ITC share price has gone through an upward trajectory for the past three years making it one of the best-performing stocks in the FMCG sector. The stock price has grown by 10.2% in a single year and will continue to grow if the company makes appropriate decisions for overall business growth. Investors looking for a large-cap stock can select ITC for their investment portfolio. Being a high-performing stock in the Sensex, ITC can still give good returns in the future on a long-term basis. Careful analysis, quarterly performance, and other fundamental aspects can help investors make the appropriate decision regarding investment.