Why has Motilal Oswal upgraded ITC share price’s rating to ‘Buy’?

ITC is India’s largest conglomerate established in the year 1910 and has its presence in FMCG Cigarettes, FMCG Others, Hotels, Paperboards, Paper and Packaging, and Agri Manufacturing Business. Its main revenue is contributed by the cigarettes and FMCG products.

ITC price has shot up to 20% from the last 6 months i e ₹210 to ₹260. It is fundamentally Bullish to buy now as the company’s price-to-earnings (P/E) ratio is decreasing and further expected to be lower, post covid sales also gained.

It is a plus to ITC that transportation is unlocked and stationary sales also will up as schools are reopened. Compared to its competitors namely Golden Tobacco, Godfrey Phillips, and VST Industries it has occupied first place in all areas. Motilal Oswal also upgraded is buy due to stability in taxes.

The good point is that taxes to be paid is getting is constant on cigarettes. CRISIL has Ranked A1+ as of May 2022. It is paying healthy dividends every year and debt is reduced highly. It is maintaining 25% of the consistent return of equity ( ROE) from the past few years.

Motilal Oswal SherKhan and Yes securities recommended buying this stock with a view of a target ₹335. Its EBIT is performing well since its inception. The Book value to slightly expensive. There is no technically up moment in ITC Stock but its fundamentals, taxes, and buy-in dip market conditions make itc to move up. Furthermore, investment advisory forms also advising to buy make the price shoot up.