ITC Emerges as India's Most Valuable FMCG Stock, Ousting Hindustan Unilever

25 Jul 2023 , 12:17 PM

In a significant development, ITC, Asia’s largest cigarette maker, briefly reclaimed its position as India’s most valuable fast-moving consumer goods (FMCG) stock on Monday, surpassing Hindustan Unilever (HUL).

Kolkata-based ITC’s valuation soared above Rs 6.1 trillion ($74 billion) during Monday’s session, marking the first time the company achieved this milestone. It temporarily outpaced Hindustan Unilever’s Rs 6.09 trillion valuation before settling lower at Rs 5.9 trillion.

The cigarette maker’s stock has been on a remarkable rally, surging over 60% in the last 12 months, outperforming all other Nifty 50 stocks.

However, ITC’s stock closed 3.9% lower on Monday, erasing gains of up to 1.9% during the day. The decline followed the company’s announcement of its plans to demerge its hotel business and retain a 40% shareholding in the new entity.

ITC’s remarkable performance underscores the company’s resilience and strategic approach amid challenging market conditions. As the competition in the FMCG sector remains fierce, ITC’s diversified business interests provide a competitive edge, making it an attractive choice for investors in the Indian market.

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