ITC shares spiked over 7 percent

Investors are grateful and showed their happiness or appreciation on social media platforms as ITC shares spiked over 7 percent. The scrip traded at Rs 232, up 7.48 percent as of 9.45 am. According to analysts, it was difficult to describe the sudden jump. Also, Deepak Jasani who is the head of research at HDFC securities argued that the reason behind the shares spiked over 7 percent is, there are higher chances of reorganizing the company and its announcement is coming soon in the next month.

It was noticed that calls are growing from the trading community that many units of the company especially hotel business which consumes a lot of cash should be divided and calls of share buyback, proactive management actions are among the demand. Also, people are claiming that due to the low margins from its FMCG business, the stock is suffering while according to others it is a sleeping giant.

The analysts’ community has been aggressively confident on the counter and out of the 34 analysts only one is in a favor of selling stock. Also, the median price target on the stock is around Rs 250 which means a potential upside of about 11 percent over the last trading price shown by the Refinitiv database and the highest target price puts the stocks’ fair value at Rs 345; on the other hand, lower target puts it as Rs 198. Also, it is noticed that Refinitiv analyses expect ITC’s earnings per share at Rs 12.68 in FY22 and Rs 14.13 in FY23. Likewise, they expect FY23 revenue to rise to Rs 59,681 crore from the current Rs 49,273 crore.