ITC stock climbs nearly 5% as company to hold analyst meet next week

ITC shares surged nearly 5% to Rs 236 after the FMCG company announced on Thursday that it will hold its first analyst meet on 14 December 2021.

"The company will hold its 'Institutional Investors and Financial Analysts Day' on Tuesday, 14th December, 2021 from 10.30 am," the company informed in an exchange filing.

Stock market participants will look for demerger announcement or further guidance on demerger from ITC management at the analyst meet. The company has remained in spotlight for quite a while amid market buzz that the company's management is considering a demerger.

In March 2021, ITC clarified to the stock exchanges that news with regard to a potential demerger of the company is "speculative in nature". "If and when there is any material development with respect to the affairs of the company, the stock exchanges are kept advised," the company said in a clarification issued to the bourses.

ITC is engaged in the marketing of fast-moving consumer goods (FMGC). The firm operates through four segments: FMCG; hotels; paperboards, paper and packaging, and agri business. ITC is the market leader in cigarettes in India. The company also has presence in branded packaged foods, personal care, education and stationery, agarbattis & safety matches, lifestyle retailing, hotels, paperboards & specialty papers, packaging, agri-business & IT.

ITC reported 13.7% rise in standalone net profit to Rs 3,697.18 crore on 11.66% increase in net sales to Rs 12,533.60 crore in Q2FY22 over Q2FY21. Total FMCG segment revenue increased by 7% YoY to Rs 9,678 crore during the period under review. In the FMCG segment, cigarettes revenue rose by 10.2% YoY to Rs 5,642 crore while the revenue from other FMCG segment improved by 2.9% YoY to Rs 4,036 crore during the quarter. Hotel business revenue stood at Rs 295 crore (up 2.6x YoY), agri-business revenue was at Rs 2,776 crore (down 7% YoY) and paperboards, paper & packaging revenues were at Rs 1,830 crore (up 25.4% YoY) in the second quarter of FY22.

Shares of ITC have underperformed the main stock indices. So far in 2021, the ITC stock has risen 11.5%, while the Nifty 50 index has gained 25% in the same period.