ITC Share Price: Stock Analysis, History, and Forecast

Since 18 October 2021, the ITC share price has drastically changed. On the said date, the ITC stock price hit an all-time high of ₹ 265.30. However, over days and then months, the ITC share prices have moved down gradually, and today, it’s hovering between ₹ 240 and ₹ 200. This downfall and the share prices range are described later in this blog.

ITC is one of India’s leading private sector companies with a huge alliance with businesses spanning Hotels, Fast Moving Consumer Goods, Agri-Business and Information Technology, and Paperboards and Packaging. 

The company is recognised as one of India’s most valuable business corporations. As of 31 March 2021, the Gross sales value of the company is ₹ 74,979, and a Net Profit is ₹ 13,032 crores. According to a survey, the company was ranked as the country’s most admired company. 

ITC Share Price

As of 25 February 2022, the ITC traded at ₹ 216.20 at 14.26 hours on NSE. While on BSE, ITC was trading at 216.05 at the same hour. The stock opened with ₹ 211.50 and ₹211 on NSE and BSE. 

The table below depicts the ITC NSE and BSE ITC share prices for 25 February 2022. 

View the graph below to have an idea of ITC stock performance for the last six performances:

Source: Moneycontrol

ITC Company Information

ITC was incorporated as a private limited company on August 24, 1910, as Imperial Tobacco Company of India Ltd. However, after some successful years of its operations, the company went public and received the recognition of Public Limited Company on October 27, 1954.

The company performed exceptionally well, and progressively, its ownership was Indianised, and that’s when the company’s name was changed to India Tobacco Company Limited in 1970. Later in 1974, it became I.T.C. Limited. 

Until then, ITC conglomerated with a wide range of businesses, including-

• Education & Stationery Products, 
• Branded Apparel, Hotels, 
• Incense Sticks and Safety Matches, 
• Cigarettes and Cigars,
• Agri-Business and Information Technology
• Paperboards and Packaging,
• Fast Moving Consumer Goods comprising Foods, and
• Personal Care.

In recognition of the company’s diversified portfolio of products and services, the full stops in the Company’s name were eradicated effective September 18, 2001. Today, it stands rechristened ‘ITC Limited,’ where ‘ITC’ is no longer an initialised form or acronym today. 

History of the ITC

The company had quite a modest beginning. It was operating on a leased office on Radha Bazar Lane, Kolkata, and it was the centre of the Company’s existence. 

The company purchased the plot of land for ₹ 310,000 at Chowringhee, Kolkata, in honour of its 16th Birthday, i.e., on August 24, 1926. The decision was no less than history, and that too in more ways than one. 

It marked the beginning of an eventful and long journey into India’s future. The company’s headquarter office, ‘Virginia House’, which became that plot of land two years later, would become one of the most venerated landmarks of Kolkata. 

ITC has a rich history. Let’s take a walk through its important timelines:

1925: Backward Integration of Packaging and Printing Business & Cigarettes and Leaf Tobacco businesses. 

1975: Entry into the Hospitality Sector – A ‘Welcome’ Move

1979: Paperboards & Specialty Papers – Development of a Backward Area

1985: Nepal Subsidiary – First Steps beyond National Borders

1990: Paperboards & Specialty Papers – Consolidation and Expansion

1990: Agri-Business – Strengthening Farmer Linkages

2000: Lifestyle Retailing – Premium Offerings

2000: Information Technology – Business Friendly Solutions

2001: Branded Packaged Foods – Delighting Millions of Households

2002: Education & Stationery Products – Offering the Greenest products

2002: Agarbattis & Safety Matches – Supporting the Small and Cottage Sector

2005: Personal Care Products – Expert Solutions for Discerning Consumers

2010: Expanding the Tobacco Portfolio

Management of ITC

There’s no denying that the management of ITC has been doing great work, and that’s why the company has been delivering huge sales and profits to its shareholders. Surely, there have been a few ups and downs, but the company managed to regain its position. 

The management of ITC is infused with extremely professional and field experts. We have mentioned the names and designations of core team members of the company in the table below:

ITC Company Location

Although ITC has various branches at several locations, it is headquartered in Kolkata, West Bengal. Here’s the address of its headquarter office:

Registered Office:

ITC LIMITED

Virginia House,

37, J. L. Nehru Road

Kolkata – 700071, India

ITC Company Performance

Since its establishment, the company has performed incredibly well. Its corporate strategy has created multiple growth drivers. 

Moreover, if we view this performance against the backdrop of the extremely challenging business terms such as during the constant economic slowdown, gestation costs associated with the new FMCG businesses, steep rise in duties/taxes on cigarettes, etc., it will appear more encouraging. 

Gross revenue for the current year amounted to ₹ 41,810 crores, which indicates a growth of 19.9%. However, the Net revenue of the company grew by 19.4% to ₹ 29,606 crores, primarily driven by the following:

• Agri business along with a growth of 13.4% in the Cigarettes Business, and
• A growth of 26.4% in the non-cigarette FMCG businesses, 

On the other hand, there was a growth of 20.1% to ₹ 10,684 crores in Profit Before Tax, whereas Net profits recorded a surge of 20.4% at ₹ 7,418 crores. 

Compared to the previous year at ₹ 7.93, Earnings Per Share for this year came to be ₹ 9.45. However, cash flows from operations amounted to ₹ 9,596 crores compared to the previous year’s aggregate of ₹ 8,334 crores. 

Altogether, the company has performed well in the last year and is today one of the most valuable and admired corporations. The market capitalisation of the company is over ₹ 2,60,000 crores. 

Moreover, the company has continuously featured amongst the top ten private sector companies in India in profits and market cap over the last seventeen years. 

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ITC Stock Returns in 2020 and 2021

Looking through the table below, we can conclude that ITC stock had a great start at the beginning of the year 2020; however, it lost its value by the end of the year. 

In January 2020, the stock price was ₹ 235.15, whereas, in December 2020, it moved down to ₹ 209. It’s quite evident that the company was underperforming. 

Even 2021 wasn’t a great start for the company as it opened with ₹ 203.25. Nevertheless, the stock made it up to ₹ 218.05, which is not very good, but it tried to finish off better than it started. 

Note: The company reached an all-time high of ₹ 265.30 on 18 October 2021, however, the price dropped gradually. 

ITC Listing and Indices

ITC is listed on some major stock exchanges in India. Besides that, it is registered on the international stock exchange as well. The listing details of ITC are furnished in the table below:

Part of Indices

ITC is a part of the following indices:

• NIFTY
• Sensex
• NIFTY 50
• NIFTY 100
• NIFTY 200
• NIFTY 500
• BSE 100 
• BSE 200
• NIFTY FMCG
• S&P CNX 500
• NIFTY Dividend Opportunities 50
• NIFTY India Consumption
• NIFTY 100 Equal-Weight 
• TR India 50
• NIFTY Growth Sectors 15
• MSCI EM
• NIFTY 50 Value 20
• NIFTY Low Volatility 50
• CNX FMCG

Should You Invest in ITC?

One of the most fundamental parameters to determine whether a company is suitable for investment or not is its previous performance. Other most important things to consider are the company’s management, corporate governance, cash flow, etc. 

ITC is a cash-rich organisation with no corporate governance issues, unlike companies like Yes Bank. Besides, the company has wonderful management and a diversified portfolio from Tobacco to Hotels, FMCG (of all categories), Agribusiness, etc. The company has surely made progress in the last five years, and hence, we could say that it’s a good stock. 

Presently, the company is going through a transformation phase and is reinventing itself. Moreover, it is transforming itself completely into an FMCG company, and the corporation aims at achieving a return of 1 lakh crore by 2030. However, as of now, the share is undervalued at ₹ 213. 

The main question is whether you should invest in it or not? The answer is simple!

If you seek to invest in a company for 7-8 months, then believe us, you should choose another stock, but ITC. However, if you have a long-term investment goal of 5 to 10 years, investing in this stock could be wise. 

Long story short, it’s highly crucial to define your investment goal first. Think about why you want to invest and what your requirements are. Once you have the answers, you must create an investment strategy and then proceed with buying stocks. 

Wrapping Up

Over the years, ITC’s share price has gone through several ups and downs, but the company always managed to regain its position at the top of the list. Persisting with its preferred tactic of building various growth drivers, the company is currently the leading FMCG market in the country.

It’s considered a trailblazer in ‘green hoteliering’ and is the second-largest hotel chain in India. Moreover, the company is the clear market leader in the Indian Paperboard and Packaging industry.

What else? The company is leading the Agri-Business in India. ITC’s fully owned subsidiary, ITC Infotech India Limited, is one of India’s fastest-growing Information Technology organisations in the mid-tier segment. Investing in such stock for a long-term goal will be a smart move.

FAQ’s about ITC Share Price