ITC shares hit record high

ITC's shares soared to an all-time high on Tuesday, demonstrating remarkable resilience amidst broader market volatility. The stock rose by 1.19% intraday, reaching a new peak of ₹516 on the BSE. With 2.08 lakh shares traded, the turnover for the day amounted to ₹10.66 crore, boosting the company's market capitalisation to ₹6.39 lakh crore. For context, ITC’s shares had previously fallen to a 52-week low of ₹399.30 on March 12, 2024. If you’re looking to share market investment, ITC’s recent performance could be a noteworthy opportunity.

Investment ratings and targets

Several analysts have recently commented on ITC’s stock, offering valuable insights for those looking to invest in the share market.

• Deven Choksey Research: This firm has given ITC an accumulated rating, with a target price set at ₹545. The brokerage highlights ITC’s robust performance across various sectors, including effective cigarette management, growth in FMCG through new channels, and strong hotel expansion. Despite challenges in paper and packaging and rising agricultural costs, ITC has successfully navigated these issues through strategic measures. The firm anticipates increased consumption driven by improving economic conditions.
• Motilal Oswal: This brokerage firm has issued a buy recommendation with a price target of ₹575. They note that improved capital efficiency will enhance operating cash flow, resulting in a sustainable dividend yield of 3-4%. With a stable tax environment for cigarettes, Motilal Oswal expects ITC’s business to grow sustainably. The valuation of ITC's cigarette segment has been adjusted to 20 times June 2026 EV/EBITDA, up from 17 times previously. They maintain a buy rating with a target price of ₹575, reflecting a multiple of 30 times the expected EPS for June 2026.

Stock performance and technical indicators

ITC’s stock has demonstrated stability and positive momentum, which could appeal to those considering investing in the share market.

• Beta and volatility: The stock has a one-year beta of 0.6, indicating lower volatility compared to the broader market. This stability may be attractive for investors seeking lower-risk opportunities.
• Technical analysis: ITC’s relative strength index (RSI) stands at 64.8, suggesting that the stock is neither overbought nor oversold. Additionally, ITC’s shares are trading above all major moving averages, including the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, and 200-day moving averages. 

This indicates strong technical performance and positive investor sentiment.

Key takeaways

For those looking to share market investment, ITC’s current stock performance presents several key considerations:

1. Record high performance: ITC’s shares have reached a new peak, reflecting strong market confidence.
2. Positive analyst ratings: Both Deven Choksey Research and Motilal Oswal have issued favourable ratings and higher price targets, indicating optimism about ITC’s future growth.
3. Stable and positive indicators: The stock’s low beta and strong technical indicators suggest stability and potential for continued gains.