ITC Ltd’s AGM key highlight was the total FMCG portfolio’s addressable market potential of Rs. 5 lakh crore by 2030. This is the highest for any Indian FMCG company and provides a huge runway of growth for the ITC’s FMCG division.
Further, the current EBIT margins remain below its peer FMCG companies, hence, we expect significant volume growth combined with a rise in the company’s bottom line in the upcoming decade. Additionally, cigarette volumes have recovered and surpassed the pre covid levels.
In the hotel segment, the company has launched 9 hotels recently and plans to add more properties in the coming quarters.
The paper segment is expected to gain due to the ban on plastic products and the Agri segment has a huge potential due to the current opportunity in exports and the sourcing advantages of the company.
In short, the company is firing on all cylinders, and being a cash-generating machine, it has the potential to grow both organically and inorganically.
Regarding the demerger and spinoff of hotels and the IT division, the company is open to suggestions and is constantly evaluating options to do the same. ITC Ltd. has been one of the best performers this year rising 36% compared to a negative 6% return of the Nifty 50 and has witnessed a whopping 13% return in one month.