Should I buy ITC stock in 2025? Insights for Indian investors
Is it the right time to buy ITC?
ScoreITC Limited, a diversified Indian conglomerate, is currently trading at around ₹413.35 per share (as of July 2025) with an average daily trading volume of over 22 million shares. The company's strong market capitalization of approximately ₹5.17 lakh crore and a robust dividend yield of 3.47% make it an attractive consideration for investors seeking both growth and stability. Recent corporate developments—a strategic demerger of the hotels business and an ambitious ₹20,000 crore investment plan over the next five years—underscore ITC's focus on accelerating growth in its core FMCG, agri, and paperboard segments. Sector sentiment remains moderately optimistic, supported by ITC’s leadership in cigarettes and steady progress in non-tobacco FMCG, with revenue diversification efforts reducing reliance on the regulated cigarettes sector. Despite recent short-term underperformance, analysts see market consolidation as a phase of opportunity, reinforced by strong cash flows, low debt, and ongoing digital transformation. In the context of India's dynamic FMCG and consumer sectors, ITC's strategic repositioning is being recognized by a consensus of 13 national and international banks, which puts the target price at ₹537.35. Given these fundamentals, the current environment may present an opportune entry point for investors looking toward resilient blue-chip stocks.
- ✅Market dominance in cigarettes with 80% share and strong FMCG growth.
- ✅Attractive dividend yield of 3.47% and high cash generation capacity.
- ✅Low valuation with a P/E ratio of 14.89 and minimal debt.
- ✅Successful diversification with steady reduction in tobacco dependency.
- ✅Consistent return on equity above 45%, reflecting operational excellence.
- ❌Cigarettes segment still contributes 78% to profits, adding regulatory exposure.
- ❌Short-term technicals indicate mild bearishness, requiring patience from investors.
Score- ✅Market dominance in cigarettes with 80% share and strong FMCG growth.
- ✅Attractive dividend yield of 3.47% and high cash generation capacity.
- ✅Low valuation with a P/E ratio of 14.89 and minimal debt.
- ✅Successful diversification with steady reduction in tobacco dependency.
- ✅Consistent return on equity above 45%, reflecting operational excellence.
Is it the right time to buy ITC?
- ✅Market dominance in cigarettes with 80% share and strong FMCG growth.
- ✅Attractive dividend yield of 3.47% and high cash generation capacity.
- ✅Low valuation with a P/E ratio of 14.89 and minimal debt.
- ✅Successful diversification with steady reduction in tobacco dependency.
- ✅Consistent return on equity above 45%, reflecting operational excellence.
- ❌Cigarettes segment still contributes 78% to profits, adding regulatory exposure.
- ❌Short-term technicals indicate mild bearishness, requiring patience from investors.
Score- ✅Market dominance in cigarettes with 80% share and strong FMCG growth.
- ✅Attractive dividend yield of 3.47% and high cash generation capacity.
- ✅Low valuation with a P/E ratio of 14.89 and minimal debt.
- ✅Successful diversification with steady reduction in tobacco dependency.
- ✅Consistent return on equity above 45%, reflecting operational excellence.
- What is ITC?
- The Price of ITC Stock
- Our Full Analysis of the ITC Stock
- How to buy ITC stock in India?
- Our 7 tips for buying ITC stock
- The latest news about ITC
- FAQ
- On the same topic
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At HelloSafe, our expert has been tracking the performance of ITC for over three years. Every month, over a million users in India trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by ITC.
What is ITC?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | India | ITC is an established Indian conglomerate with a diversified business portfolio. |
| 💼 Market | NSE / BSE | Listed on major Indian exchanges, providing high accessibility and liquidity. |
| 🏛️ ISIN code | INE154A01025 | Official identifier enabling transparent and regulated trading of ITC shares. |
| 👤 CEO | Sanjiv Puri | Under Sanjiv Puri, ITC is driving strategic diversification and digital transformation. |
| 🏢 Market cap | ₹5,17,271 crores | Reflects ITC's status as a large-cap with broad investor trust and financial stability. |
| 📈 Revenue | ₹18,765 crores (Q4 FY25) | Healthy revenue growth, led by strong FMCG and agri-business contributions. |
| 💹 EBITDA | Data not specified here | Operational margin strength is sustained by FMCG expansion and stable core segments. |
| 📊 P/E Ratio (Price/Earnings) | 14.89 | Valuation is attractive, suggesting opportunity amid stable earnings and sector diversification. |
The Price of ITC Stock
The price of ITC stock is rising this week. It currently trades at ₹413.35, showing a 24-hour increase of ₹0.40 and a weekly change of -1.65%. The company boasts a market capitalization of ₹5,17,271 crores and an average 3-month trading volume of 22.36 million shares. With a P/E ratio of 14.89, a dividend yield of 3.47%, and a beta of 0.67, ITC offers a mix of attractive value and low volatility, highlighting its appeal for steady, long-term investment in the Indian market.
Our Full Analysis of the ITC Stock
Following a thorough review of ITC’s latest financial results and its performance trend over the last three years, our proprietary approach has combined financial metrics, technical signals, in-depth market data, and peer comparisons to deliver a comprehensive analysis. Leveraging multiple expert sources, this report aims to shed light on ITC’s strategic evolution as one of India’s pre-eminent conglomerates at a time of rapid sector transformation. So, why might ITC stock once again become a strategic entry point into the Indian diversified FMCG sector in 2025?
Recent performance and market context
ITC has demonstrated noteworthy resilience amid shifting sector dynamics, trading at ₹413.35 as of July 2025. Over the past week, the stock is down by just 1.65%, and over six months, by 14.17%, outperforming many sector peers who have faced sharper drawdowns. Its robust ₹5,17,271 crores market capitalization firmly cements ITC among India’s blue-chip leaders. Recent milestones—such as the successful demerger of its hotels arm, strategic international expansion in hospitality, and a bold ₹20,000 crore investment plan—underscore a management team committed to unlocking shareholder value and sustained long-term growth. These corporate actions arrive at a moment when India’s macroeconomic climate is highly favourable for consumer-oriented businesses: rising disposable incomes, rural demand recovery, digitalisation, and supportive government policies are all tailwinds for large, well-diversified players like ITC.
Technical analysis
Despite a mild corrective phase, ITC’s technical setup reveals opportunity for savvy investors. The Relative Strength Index (RSI) is at 44.14, landing in neutral-to-lightly-oversold territory—a classic area that can precede bullish reversals for fundamentally strong stocks. The MACD, at -0.87, currently indicates a short-term sell, but this is often observed in consolidation phases which precede renewed upward movement, particularly when supported by strong fundamentals.
ITC trades just above a key support at ₹411.25, while near-term resistance at ₹416 signals a tightly coiled price action with limited downside risk and clear potential for rapid retracement. Notably, the current price is below all major moving averages (20-, 50-, 100-, 200-day), a scenario that historically—when unaccompanied by fundamental deterioration—has offered attractive accumulation points for investors with a medium- to long-term focus. As ITC consolidates, volume signals and mean-reversion dynamics become especially pertinent, making the current technical context likely to reward patient, risk-calibrated entry.
Fundamental analysis
Beneath the charts, ITC’s core business fundamentals remain remarkably strong and supportive of a positive thesis. Recent quarterly results (Q4 FY25) reveal revenue of ₹18,765 crores and a net profit of ₹19,808 crores (including exceptional items). Profits per share remain robust at ₹15.76, underpinned by sector-leading margins and a diverse revenue base. With a trailing P/E of 14.89—well below global consumer peers—the stock trades at an attractive valuation, even as its consistent 3.47% dividend yield and best-in-class ROE (47.9%) signal ongoing value creation.
The strategic shift away from cigarettes (now 42% of revenue, compared to 62% in FY14) into high-growth, high-margin FMCG categories has begun bearing fruit, lowering regulatory risk and boosting competitive insulation. FMCG foods, personal care, agri-business, and packaging divisions have all posted steady gains, reflecting both deep consumer trust and innovation. ITC’s price-to-book ratio is elevated (7.39), but justified given its unrivalled brand portfolio, market dominance, and debt-free balance sheet—hallmarks of a uniquely resilient Indian corporate.
- A well-executed diversification strategy that now anchors 58% of revenue outside tobacco
- Ongoing annual sales growth (~5.8%) in non-tobacco businesses
- Strong international expansion of its newly spun-off hotels arm and “Next Strategy” tech-led push
- Strategic risk management, including a quasi-zero debt/equity profile
Volume and liquidity
Market confidence in ITC is reflected in its impressive three-month average daily volume of over 22 million shares, ranking it as one of the most traded and liquid stocks on the NSE. Such substantial liquidity ensures highly efficient price discovery, low transaction costs, and ease of entry or exit, appealing to both large institutions and retail investors across India.
The company’s public float—a blend of nearly 40% FII and 45% DII holdings—amplifies the dynamism of valuation and maintains a competitive, transparent trading environment. Index inclusions (NIFTY 50, SENSEX, BSE 500) further bolster regular pricing support from institutional buyers, making ITC a mainstay for core Indian equity portfolios.
Catalysts and positive outlook
- FMCG momentum: Ambitious goals to grow non-cigarette FMCG turnover to ₹1 lakh crore by 2030, with leading market share in packaged foods and personal care.
- Hotels demerger: Completion of the ITC Hotels Limited demerger unlocks separate value and allows each entity to more aggressively pursue focused growth strategies.
- Digital transformation: Technology and supply chain innovation under “Next Strategy” enhances efficiency, consumer engagement, and market reach, further insulating margins.
- Sustainability leadership: Progressive ESG efforts position ITC to benefit from rising global and domestic demand for sustainable business operations, appealing to socially responsible investors.
- R&D and product innovation: Launch of new product lines and upscale packaging solutions are strengthening brand loyalty and increasing premium market penetration.
- Sector tailwinds: India’s consumer sector is experiencing a cyclical renewal, spurred by demographic trends, rural income growth, and government reform, all of which support increased spend on FMCG.
- Dividend policy: Continued strong dividend distribution, now among the highest in blue-chip Indian stocks.
These multiple growth engines, complemented by robust execution, set ITC apart as a conglomerate positioned for ongoing re-rating as domestic and global capital flows return to quality Indian stocks.
Investment strategies
- Short-term: Technical indicators suggest ITC is at or near a local support bottom. As market sentiment stabilizes and technical mean reversion takes hold, tactical accumulation on dips—particularly around ₹411—looks justified. Near-term upside is further buoyed by consensus price targets near ₹500.
- Medium-term: Investors seeking to harness sectoral or company-specific catalysts—upcoming product launches, Q1 earnings, or positive macro triggers—may build positions steadily ahead of expected reacceleration in both price and volume.
- Long-term: For buy-and-hold investors, ITC serves as a high-quality, core portfolio anchor. Its defensive nature, global-facing growth plans, robust dividend stream, and de-risked business model present ideal conditions for compounding wealth and preserving capital. Strategies like systematic investment plans (SIPs) or reinvestment of dividends are particularly attractive.
Investors may consider incremental entry or portfolio rebalancing at current quotes, given the attractive blend of valuation, yield, and prospects.
Is it the right time to buy ITC?
In summary, ITC’s unique position—as India’s most diversified consumer conglomerate with a strong innovation pipeline, robust financial strength, and unmatched liquidity—seems to represent an excellent opportunity for value- and growth-oriented investors in 2025. The fundamentals justify renewed interest, the market structure is supportive, and the company’s ambitious transformation agenda points to repeated upside surprises ahead.
With well-managed risks, visible growth catalysts, and ongoing capital return to shareholders, ITC stock may be entering a new bullish phase. The convergence of technical support, reasonable valuation, and strong business momentum positions ITC as a stock every serious investor in the Indian market should be actively considering. This environment could reward those willing to participate in what appears to be a compelling entry point for both current income and long-term capital appreciation.
How to buy ITC stock in India?
Buying ITC stock online is quick and secure when you go through a SEBI-regulated broker in India. Investors can choose between spot buying, which provides direct ownership of ITC shares, and CFD trading, which allows speculation on price movements without holding the shares. Both methods are readily accessible on most online platforms, making investing in ITC flexible and convenient. For a detailed comparison of brokers, simply scroll down this page.
Spot buying
A spot purchase of ITC stock means you directly own the shares on your Demat account, giving you dividend rights and the ability to vote at AGMs. In India, brokers typically charge a fixed commission per order, often between ₹100 and ₹500, or about $5 per trade.
Gain scenario
If the ITC share price is $4.95 (₹413.35), you can buy around 202 shares with a $1,000 stake, including a brokerage fee of around $5.
If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD trading on ITC shares lets you profit from price changes without actually owning the stock. You pay a spread (the buy/sell difference) and may incur an overnight financing cost if the position is held overnight.
CFD Gain Scenario
You open a CFD position on ITC shares, with 5x leverage and a $1,000 stake. This gives you a market exposure of $5,000.
✔️ Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain, on a bet of $1,000 (excluding fees).
Final advice
Before investing, always compare the fees, investment options, and support tools of different platforms. The right method—spot buying or CFD trading—depends entirely on your investment goals and your appetite for risk. You’ll find a comprehensive broker comparison further down the page to support your choice.
Check out the best brokers in India!Compare brokersOur 7 tips for buying ITC stock
| 📊 Step | 📝 Specific tip for ITC |
|---|---|
| Analyze the market | Study ITC’s dominance in FMCG, tobacco, and how regulatory trends in India could influence future growth. |
| Choose the right trading platform | Select a reliable Indian broker offering NSE/BSE access and competitive fees for ITC stock. |
| Define your investment budget | Decide your capital outlay based on ITC’s low volatility and strong dividend history for stability. |
| Choose a strategy (short or long term) | Favour a long-term approach to benefit from ITC’s diversification and consistent cash flow. |
| Monitor news and financial results | Track ITC’s quarterly results, hotel demerger updates, and new FMCG launches that impact value. |
| Use risk management tools | Use stop-loss orders and position sizing to protect your ITC investment from unexpected swings. |
| Sell at the right time | Consider selling when ITC hits analyst targets or after periods of significant positive news. |
The latest news about ITC
ITC posts stable share price with strong institutional support in latest trading sessions. Over the past week, ITC’s share price has hovered near ₹413, demonstrating resilience amid recent market volatility. Trading volumes have remained robust, with an average of 22.36 million shares exchanged daily—signaling ongoing confidence from both domestic and foreign institutional investors.
ITC’s diversified FMCG growth strategy gains traction, reducing exposure to regulatory risks. Recent company disclosures confirm success in shifting revenue streams beyond tobacco, with the non-cigarette FMCG segment showing accelerating momentum. This strategic diversification is viewed positively by market analysts, positioning ITC for stability and potential outperformance in India’s consumer goods sector.
ITC completes strategic hotel business demerger, unlocking value and focusing on core segments. The official spinoff of ITC Hotels into a separate entity has been finalized, aligning with ITC’s “Next Strategy.” This move allows ITC to sharpen its focus on high-margin FMCG and agri-business operations, a transition welcomed by investors tracking value accretive restructuring in Indian conglomerates.
Management reiterates significant investment plan for expansion and innovation in India. In recent CEO communications, ITC confirmed it will deploy ₹20,000 crores over the next five years, targeting domestic innovation, digitalization, and new product launches. The commitment underscores ITC’s ambition to maintain leadership in India’s rapidly evolving FMCG landscape.
Analyst consensus remains moderately optimistic with new price target upgrades for ITC. Leading Indian brokerages and market research firms have updated their consensus target for ITC to ₹500.26, reflecting a potential 20.5% upside from current levels. Analysts cite strong fundamentals, superior cash flow, and ITC’s defensive business model as justifications for this positive outlook.
FAQ
What is the latest dividend for ITC stock?
ITC currently pays a dividend, with the latest declared at ₹15.50 per share for FY2025. The payment date was June 2025, and the dividend yield sits at about 3.5%, which is attractive compared to Indian market averages. ITC is known for a consistent and shareholder-friendly dividend distribution policy, supported by its reliable cash flow and resilient business model.
What is the forecast for ITC stock in 2025, 2026, and 2027?
Based on current pricing, the projected value for ITC at the end of 2025 is ₹537.36, for 2026 it is ₹620.03, and for 2027 it is ₹826.70. The company’s strong fundamentals, robust cash flow, and growing presence in FMCG products continue to support its long-term outlook. Many analysts remain positive about further gains as ITC executes its strategic growth initiatives.
Should I sell my ITC shares?
For most investors, holding ITC shares may be appropriate given the company’s solid valuation and resilience. ITC offers a track record of stable returns and consistent dividends, even during market volatility. Its focus on diversification and steady growth in high-potential segments like FMCG further strengthens the investment case. Carefully reviewing your investment horizon and goals can help guide your decision, but the fundamentals support a patient approach.
Are ITC shares eligible for any tax-saving schemes or subject to special taxation in India?
ITC shares are not eligible for specific tax-saving schemes like ELSS or PPF, but dividends and capital gains are taxed per Indian law. Dividends received are added to your taxable income, while long-term capital gains above ₹1 lakh are taxed at 10% without indexation. Investors should also note that there is no tax deducted at source (TDS) for resident individuals for dividends up to ₹5,000 annually.
What is the latest dividend for ITC stock?
ITC currently pays a dividend, with the latest declared at ₹15.50 per share for FY2025. The payment date was June 2025, and the dividend yield sits at about 3.5%, which is attractive compared to Indian market averages. ITC is known for a consistent and shareholder-friendly dividend distribution policy, supported by its reliable cash flow and resilient business model.
What is the forecast for ITC stock in 2025, 2026, and 2027?
Based on current pricing, the projected value for ITC at the end of 2025 is ₹537.36, for 2026 it is ₹620.03, and for 2027 it is ₹826.70. The company’s strong fundamentals, robust cash flow, and growing presence in FMCG products continue to support its long-term outlook. Many analysts remain positive about further gains as ITC executes its strategic growth initiatives.
Should I sell my ITC shares?
For most investors, holding ITC shares may be appropriate given the company’s solid valuation and resilience. ITC offers a track record of stable returns and consistent dividends, even during market volatility. Its focus on diversification and steady growth in high-potential segments like FMCG further strengthens the investment case. Carefully reviewing your investment horizon and goals can help guide your decision, but the fundamentals support a patient approach.
Are ITC shares eligible for any tax-saving schemes or subject to special taxation in India?
ITC shares are not eligible for specific tax-saving schemes like ELSS or PPF, but dividends and capital gains are taxed per Indian law. Dividends received are added to your taxable income, while long-term capital gains above ₹1 lakh are taxed at 10% without indexation. Investors should also note that there is no tax deducted at source (TDS) for resident individuals for dividends up to ₹5,000 annually.
On the same topic
