Whether you are looking to buy ITC share for long term or short term, you need to consider some factors before you decide to invest. In this pioneer epaper article, we will cover some of the important factors you need to consider before you make your decision.
What will be the share price of ITC in 2023
Despite the name, ITC is not a cigarette manufacturer but a diversified player in the consumer product space. It operates in five main segments. These include hotels, FMCG cigarettes, agribusiness, papers, and packaging. Its FMCG business has been growing for five years in a row and boasts of a stellar margin. Its hotels business has also been showing its stuff.
The company’s management team is no doubt impressive and a major player in the expansion game. ITC has over 36,500 employees in all and has a footprint in 90 countries. The company is also a member of the NIFTY 50 index. The ITC of old was trading in the range of Rs 200 to 300 for years. However, the stock has shattered all its previous highs.
The company has a storied history and a solid business plan. The company has a long standing relationship with the government and is a member of the Indian Association of Manufacturers. As such, ITC is well positioned to take advantage of the booming Indian economy.
The company also has a fair share of innovation, especially in the FMCG space. Its hotels business has a stellar occupancy rate above the pre-pandemic level. The company also has a well-rounded supply chain and a solid distribution network. The company also has a solid grasp on its compass. This coupled with its shrewd use of technology and innovation will ensure that ITC keeps up with the rest of the pack.
What is the lot size of ITC future?
Using ITC as the benchmark, we have the following – ITC is one of the largest companies in the FMCG and Cigarette sectors. ITC has been able to sustain and grow its earnings over the past few decades. The company has the biggest market cap in the FMCG industry. The company has also been able to generate consistent profits, adding long-term value to its shareholders. The company’s future is also looking bright. ITC is available for trading on the Future and Options markets.
In the interest of full disclosure, ITC is a member of the NSE. This company has a storied history, a slew of impressive accolades and a long list of prestigious awards and recognitions. Nevertheless, one has to wonder, what is the lot size of ITC Future? The company’s future has seen plenty of ups and downs in the past. Its future is only likely to get rosier in the years to come.
The ITC future is a product of many factors, most notably the company’s robust financials and market-savvy executives. Nevertheless, the company’s latest IPO will see P120 million in preferred shares issued. These are expected to boost ITC’s stock price by a hefty margin, with dividends to follow. This is a good time to buy ITC.
In addition, the company has recently launched a series of initiatives, ranging from the establishment of the India Financial Technology Exchange (IFTE) to a new IPO in the telecommunications space.
Who is the biggest shareholder of ITC?
Founded in 1790, ITC is one of the leading private sector companies in India. ITC has diversified into a variety of businesses, including FMCG, hotels, real estate and agribusiness. But, the company’s core cigarette business still provides the company with its bread and butter.
ITC’s shareholding is diversified, and includes foreign institutions, the government and individual investors. ITC’s shareholding has increased by approximately 25 percent over the past couple of years.
Foreign Institutional Investors (FIIs) hold approximately 13.5 percent of ITC shares. They increased their holding by 10 percent over the first nine months of 2022. This is an indication that ITC is a good investment for FIIs.
The government of India is the next largest shareholder. The Government of India is a significant shareholder of ITC. It holds a total of 20.7 percent of the company. ITC’s shareholding pattern page lists the FIIs’ holding in the company.
ITC is a leading company in India, and ranks among the Business World’s Most Respected Companies. It also ranks among Forbes magazine’s World’s Best Big Companies.
ITC Ltd has diversified into a variety of businesses, including cigarette production, hotels, FMCG and paperboards. It has won numerous national and international awards for its management systems. In addition, ITC’s hotels have been recognized for their quality and service.
ITC Limited’s total revenue in 2011-12 was Rs 36,000 crore. The company has a net profit of Rs 6,162 crore.
Will ITC bounce back?
Earlier, ITC was a laggard in the Indian stock market. But since the start of this year, it has been one of the best performers in the country. Moreover, the company has refreshed its strategy and has started investing in disruptive business models.
The company’s ‘ITC Next’ strategy is based on the integration of sustainability and digital technologies into its business. The strategy was unveiled at the 110th AGM of the company. It aims to deliver long term enduring value to shareholders and stakeholders.
ITC is also known for its “Cup with handle” pattern. This pattern is found on the daily chart of the company. The company operates in five segments. The FMCG Others segment distributes packaged foods, office supplies, personal care products, and school supplies. The Paperboards, Paper and Packaging segment produces printing papers, graphic boards, and specialty boards. The company also has a wholly owned subsidiary in Brazil.
The company has also informed the exchanges about the incorporation of a step down subsidiary. This new subsidiary will be known as ITC Infotech Do Brasil LTDA. The company is set to announce second quarter results on October 20. The company’s first quarter profit rose to Rs 4,169 crore.
During the 110th AGM of the company, Chairman Sanjiv Puri outlined the ‘ITC Next’ strategy. This is the company’s new plan to drive revenue growth and enhance the bottom line.
The company has also made a bold claim about its strategy. It plans to generate 35-40 per cent in a few months. In addition, the company is investing in renewable energy. ITC’s solar systems installed in 2022 will be eligible for a 30% tax credit.
Which share is better ITC or HINDUNILVR?
Compared to the likes of HUL, ITC is one of the oldest companies in India. It has a portfolio of several sectors including FMCG, consumer goods, tobacco, hotel, agri-commodities, packaging, and information technology. ITC has a good business model, good management, and a decent free cash flow yield. ITC is a very good bet for investors looking for a high conviction buy at a reasonable valuation.
A quick look at ITC’s stock chart will tell you that ITC has been retracing its steps since its low of 134.6 in 2009. In the last six months, ITC has surpassed HUL in terms of both market cap and EPS growth. In terms of ITC’s topline, the FMCG segment has shown excellent growth, while the hotel business has been less so.
ITC is also a good bet for long-term gains. The company has a wholly owned IT subsidiary that provides IT services to leading global customers. ITC has carved a niche for itself by offering innovative solutions to customers’ IT challenges.
The price-to-earnings ratio of ITC is a little lower than HUL’s, indicating that ITC’s financial performance is not overly impressive. However, the company’s management is doing a decent job of putting the company on a solid footing. There is one major concern that is weighing on the bottom line: unallocated capital.
The company’s best bet for short-term gains would be to focus on the positive stock-specific action in NMDC, Poly Cab, and Apollo Hospital.
Is it worth to buy ITC share for long term?
Whether it’s worth investing in ITC share for long term or short term? Whether it’s a good play for income seekers, investors who are looking for a dividend yield play or for those who just like the idea of a diversified FMCG major, the answer is yes.
ITC is a multifaceted company with business segments in FMCG, hotels, paperboards, specialty papers, agribusiness, and packaging. ITC is a company that has been consistent in providing positive returns to investors.
As ITC’s earnings continue to grow, the company has shown consistent dividend yields over the past five years. The company recently announced a dividend of Rs 10 per share. This will be paid to shareholders who bought shares by May 25, 2022.
The ITC share price has risen to a fresh 52-week high on Friday. It is likely that the share price will breach minor resistance, and may reach a level of Rs 325 per share.
ITC has reported robust growth in cigarette volumes. This is largely because of the tax-stable environment. This will enable the company to calibrate its price increases, and improve earnings visibility. However, the cigarette business margins may be under pressure due to high commodity inflation.
The company has also commented on its outlook for the year. It expects overall EBIT to remain in the 80-86% range in FY23E. The company also expects new products to help accelerate volume growth.