ITC surges 5% on reports of potential investment from an e-commerce titan

Avaneesh Parasar

• Shares of consumer products company ITC surged as much as 5% on Thursday hitting its 52-week high at ₹261.80.
• The company’s stock is known for its massive underperformance over the years as in the last five years ITC has gained just 7% while benchmark index Sensex went up 120%.
• Analysts believe the stock deserves better valuation following its poor stock performance over the years.

Cigarettes-to-biscuits conglomerate ITC has been surprising investors with a rally in its shares in the last one month.
Media reports indicate that e-commerce giant Amazon is planning to invest in ITC’s e-Choupal and this seems to have triggered the stock on Thursday. Shares of the company have gained as much as 5% hitting its 52-week high at ₹261.80 on October 14.

Farmers use e-Choupal to order seeds, fertilisers and aquaculture products like soybeans, wheat, coffee, and prawns from ITC or its partners at prices lower than those available from village traders.

Source: https://www.businessinsider.in/stock-market/news/itc-surges-5-on-reports-of-potential-investment-from-an-e-commerce-titan/articleshow/87016393.cms