ITC Limited, an Indian corporation operating in various industries including Fast-Moving Consumer Goods (FMCG), Hotels, Software, Packaging, Paperboards, and Agriculture, was established in 1910, making it 113 years old. Its main office is located at Virginia House in Kolkata, West Bengal. The company boasts a market capitalization of Rs 5.54 trillion, ranking it as India’s second most valuable FMCG entity, just after Hindustan Unilever Limited (HUL). In the fiscal year 2022-23, it reported total revenues of Rs 78,498.70 crores.
However, the stock price of ITC has been experiencing volatility over the past year, despite showing a 59.16% increase since 2019. In this piece, we will explore the factors influencing the future of ITC’s stock price.
ITC Recent Developments
The brokerage firm ‘’Jefferies’’ has kept its recommendation for ITC, anticipating a 7% annual growth in the company’s Cigarette Earnings Before Interest, Taxes, Depreciation, and Amortization (EBIT) over the fiscal years 2023-26.
ITC is set to launch its latest venture, ‘’Peshawari’’, a renowned dining establishment, at its Kehnur Hotel in Hyderabad, marking its 10th opening.
The company aims to expand its market share in North India, focusing on YiPPee!, which is currently the second-largest brand for noodles in India.
ITC’s growth has been affected by a decline in its cigarette sales, along with reduced earnings from its paperboard and agribusiness divisions, impacting its overall growth rate during the October-December quarter of 2023.
The stock price of ITC has seen a recent drop following its announcement of its third-quarter results for 2023.