Shares of ITC have gained 50.91 per cent in a year and risen 15.26% this year. The stock has gained 13.71 per cent in a year and lost 2.41% in 2023. 
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Shares of ITC have gained 50.91 per cent in a year and risen 15.26% this year. The stock has gained 13.71 per cent in a year and lost 2.41% in 2023. Shares of ITC and Hindustan Unilever Ltd (HUL) are among the favourite picks of investors in the FMCG space. Of late, shares of ITC have been hitting fresh all-time highs almost on a daily basis. In fact, the stock touched a fresh all-time high of Rs 405.5 in early trade today against the previous close of Rs 400.30 on BSE. Once considered a defensive bet, ITC stock has gained 7.45% in a month and gained 22.16% in 2023. With the current rally, the stock looks overvalued with a PE ratio of 27.32 against the PE of 15.64 for the industry. On the other hand, shares of HUL are valued reasonably when compared with PE of the industry. PE ratio of HUL stands at 59.86 against PE of 55.06 for the industry. However, the stock of the HUL has lagged behind in terms of returns when compared to ITC. HUL stock has gained 1.49% in a month and lost 2.34% this year.
In the current trading session, ITC shares hit an all-time high with the firm’s market cap crossing Rs 5 lakh crore market cap mark for the first time ever. ITC stock has been gaining for the last 2 days. The stock has gained 55.43% in a year.
In the current trading session, shares of ITC were trading 3.36% away from the 52 week high of Rs 394 hit on February 23, 2023. Shares of ITC have gained 50.91 per cent in a year and risen 15.26% this year.
Total 2.51 lakh shares of the FMCG firm changed hands amounting to a turnover of Rs 10.12 crore on BSE. Market cap of the firm rose to Rs 5.03 lakh crore. At 12:09 pm, the stock was trading 1.17% higher at Rs 405 on BSE.
In terms of technicals, the relative strength index (RSI) of ITC stock stands at 67.6, signaling it's trading neither in the overbought zone nor in the oversold zone. ITC stock has a one-year beta of 0.5, indicating very low volatility during the period. ITC shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
On the other hand, HUL shares have gained after three days of fall. At 12:17 pm, the stock was trading 0.16% higher at Rs 2497 against the previous close of Rs 2493 on BSE.
A total of 0.47 lakh shares of the firm changed hands, amounting to a turnover of Rs 11.75 crore on the BSE. Market cap of the company rose to Rs 5.86 lakh crore. The stock hit a 52-week high of Rs 2,741 on December 9, 2022 and a 52-week low of Rs 2047.55 on April 25,2022. The stock has gained 13.71 per cent in a year.
In terms of technicals, the relative strength index (RSI) of HUL stock stands at 45.1, signaling it's trading neither in the overbought zone nor in the oversold zone. HUL stock has a one-year beta of 0.7, indicating very low volatility during the period. HUL shares are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
With the former defensive stock ITC scaling fresh highs on a daily basis and HUL shares available with a pricier tag, here’s a look at what analysts said about the outlook of both stocks.
Abhijeet from Tips2trades said, "A recovering dollar due to strong recession fears in the US and Europe has coupled with strong demand in the hotel industry has led investors to accumulate ITC on every dip. Currently, though ITC looks bullish and could move up to next resistance of Rs 410 & even Rs 425 in the near term. These levels should be used by investors to book profits and wait for a dip near support levels of Rs 360 or Rs 329 in the lower range to initiate fresh buy positions for much better returns in the months ahead."
On HUL, he said, "HUL has been fundamentally very strong over the past few decades but a high inflationary environment has ensured lower operating margins and has also impacted ROE & ROCE this year. Technically, HUL has a strong resistance zone between Rs 2600-2700. Investors should buy only on a dip near support zone of Rs 2390-2420 for higher targets in the coming months."
On comparison between the two stocks, Abhijeet said, "Currently, ITC looks in a much better financial condition but in terms of stock price returns, ITC has limited upside and HUL could surprise on the margins front if CPI remains at current levels."
Aamar Deo Singh, Head Advisory, Angel One said, "ITC has witnessed a spectacular run since March 2022, with the stock up by 23% YTD. On the other hand, HUL continues to remain a laggard so far this calendar year, down 2.5%. On the upside, ITC has crucial resistance around the Rs 450-460 mark, whereas support is seen around the Rs 340-360 zone. Talking about HUL, the stock runs into a stiff wall of resistance around the Rs 2700-2750 zone whereas support for the stock is seen around the Rs 2200 mark. If one were to have to choose between the two, ITC would be a better option, given the strong uptrend and the positive momentum, currently on display in the stock."
Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher said the near term target for ITC is Rs 420 to Rs 425 zone.
“ITC stock has been in a strong trending mode with bullish bias maintained and after a short consolidation phase has once again picked up momentum moving past the resistance zone of Rs 390-392 levels anticipating for further upward move. The near term target would be near Rs 420-425 zone with near term support maintained near Rs 380-382 levels,” said Parekh.
On HUL stock, Parekh said one can expect a target of Rs 2730 levels.
“HUL stock has been moving within a range for quite some time. It has recently taken support near the Rs 2420 levels and has once again picked up momentum to improve the bias. Once a decisive breach above the significant 200DMA level of Rs 2565 shall further strengthen the trend and set next targets of Rs 2680 and Rs 2730 levels. The support would be near 2440 levels and with the RSI indicator well placed and has much upside potential visible from here on,” said Parekh.
Dr. Ravi Singh, Vice President and Head of Research, Share India said, “ITC is better than HUL in terms of expected returns due to its steady performance in quarterly numbers taking cues from the demand recovery in cigarette and hotel business, cost optimisation and trending sales momentum in FMGC sector. Stability in taxes on cigarettes backed by deterrent actions by enforcement agencies, enable continued volume recovery. The stock on technical setup is also exhibiting bullish trend on daily chart. Investors may hold their positions for a target of Rs 420 levels in the coming sessions.”
On HUL, Singh said, “HUL also has a positive outlook from long term perspective with respect to operating margins expansion driven by higher penetration-led growth, which may lead to higher operating leverage along with launching of premium brands. On the technical setup, the shares of HUL are showing strength on daily chart and the momentum indicators are suggesting a target of Rs 2680 in long term.”
Ravi Singhal, CEO, GCL Broking said, “ITC and HUL are leaders in their category but as per valuation point of view, ITC is far cheaper than HUL. ITC’s PE ratio stands at 33 and HUL’s PE ratio stood at 67 which is almost double to Price to book of ITC . While HUL’s price to book trades 50% more compared to ITC at 12. HUL is facing strong competition in cosmetics , shampoo and toiletries but washing powder and cake are doing well. Even many start ups and entry of big retail players has affected HUL. On other hand, ITC is a leader in all major segment cigarettes, Hotels, Paper and agriculture. ITC has given 52% return in a year compared to HUL which has delivered 19% return in 1 year. We think still ITC will outperform HUL.”
Singhal gave a target of Rs 470 in a year for ITC. He cited factors such as valuations, diversified business, adoption according to new business environment such as they have acquired a company to enter in the healthy snacking business.
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