Shares of ITC surged more than 5.5 percent on Friday, lifting benchmark indexes to record highs, as the street gave a thumbs-up to the cigarette-to-soap maker’s strong quarterly results for the period ended in June.

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ITC stock traded at Rs 303, surging by 5.52 percent, adding Rs 15.85 to the stock price. The stock has crossed the Rs 300 mark for the first time since July 17, 2017.

The company's results came out on Thursday, showing a more than 10 percent jump in net profit at Rs 2,819 against CNBC-TV18’s poll of Rs 2,840 crore.

During the June quarter period, ITC’s net sales stood at Rs 10,874 crore, up 9.20 percent on year. The growth in the bottom line came from better realisations from cigarettes vertical and rise in non-cigarette businesses.

At Rs 3,74,207.86 crore, ITC’s market cap has surpassed Hindustan Unilever’s Rs 3,59,978.60 crore. HUL share was down at Rs 1663.00, losing Rs 5.30 in value.

#MarketAtRecordHigh | @ITCCorpCom surpasses @HUL_News in market capitalisation pic.twitter.com/iPghh8QNjd

— CNBC-TV18 (@CNBCTV18Live) July 27, 2018Brokerage firms are upbeat on the stock and have mostly given a 'buy' rating.

Deutsche Bank suggested a 'buy' with a target price of Rs 350, given the cigarette volume is up 1.5 percent after declining for 3 quarters.

Jefferies has reiterated 'buy' at a target price of Rs 345, saying the company can outperform the sector over next 6-9 months.

Meanwhile, in its annual general meeting, ITC chairman Y.C. Deveshwar hoped the growth trajectory in India to continue for a while as in the last two decades the company has traversed a journey of transformation.

"Over the last 22 years total shareholder returns grew at a compound annual rate of 22.4%, double that of the Sensex at 11%. ITC’s contribution to the Exchequer at the Central and State levels exceeded Rs 3,00,000 crores. ITC’s non-cigarette businesses over this period have registered a 19-fold growth constituting nearly 59% of net segment revenue. Over 80% of the operating capital and about 90% of the employee base of the ITC group are deployed in the non-cigarette businesses," he said addressing the AGM.

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First Published:Jul 27, 2018 11:04 AM IST