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ITC achieves record share price and ₹6.5 lakh crore market cap

Stocks
2 min Read Sep 26, 2024
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ITC's share price surged nearly one percent on Thursday, achieving a record high of ₹522.50 on the Bombay Stock Exchange (BSE). This milestone marks the first instance where the conglomerate's market capitalisation exceeded ₹6.5 lakh crore. 

The recent uptick in ITC's stock has drawn attention from investors, particularly in the context of the evolving share market investment landscape.

Key acquisition boosts ITC's portfolio

On September 25, ITC revealed that it had acquired 1,413 Compulsorily Convertible Preference Shares (CCPS) from Sproutlife Foods Private Ltd. This investment is part of a follow-on arrangement under the Securities Subscription and Purchase Agreement, originally executed on April 19, 2023. The arrangement is designed for ITC to eventually obtain full ownership of Sproutlife's share capital through several phases.

With this latest acquisition, ITC's stake in Sproutlife now stands at approximately 47.50%, with a total investment of ₹255 crore. The company emphasised that this move aligns with its strategy to enhance its future-ready portfolio within the food segment.

Sproutlife: A promising venture

Sproutlife is a start-up focused on producing and selling food products under the "Yoga Bar" brand. The company has established a significant presence in online sales through direct-to-consumer (D2C) channels and e-commerce platforms while also expanding its footprint in offline retail.

ITC's stock performance and outlook

ITC's stock has experienced a steady climb, recording nearly 22% returns over the past three months. Year-to-date, the shares have appreciated by over 12%, and there has been a more than 17% increase over the past year. Analysts express optimism about ITC's stock performance, particularly as it remains above the psychologically important ₹500 level.

Milan Vaishnav, founder of ChartWizard FZE and Gemstone Equity Research, believes that ITC shares will continue to perform well and potentially reach levels between ₹530 and ₹538 soon. However, he warns that if the stock dips below ₹500, it may enter a phase of consolidation.

At 11:45 am on Thursday, ITC shares were trading at ₹519.45, up by 0.39%, with a market capitalisation exceeding ₹6.49 lakh crore.

Key takeaways

  • ITC's share price reached a record high of ₹522.50, with market capitalisation surpassing ₹6.5 lakh crore.

  • The company acquired 1,413 CCPS in Sproutlife Foods, increasing its stake to approximately 47.50%.

  • ITC’s stock has provided substantial returns, gaining 22% in three months and 12% year-to-date.

  • Analysts remain bullish on ITC shares, particularly as they stay above ₹500.

  • Future projections suggest potential stock price targets of ₹530 to ₹538.

This significant performance highlights ITC's strategic moves in the share market investment arena, bolstering confidence among investors.