The ITC share price has been a topic of discussion among investors due to changes in GST rates, dividend payouts, and market performance. As one of India’s largest diversified companies, ITC operates in FMCG, hotels, paper, packaging, and its well-known cigarettes segment. The stock has seen steady demand from retail and institutional investors, making it a long-term portfolio favorite.
About ITC
ITC Limited is a leading Indian conglomerate with businesses spread across fast-moving consumer goods, hotels, paperboards, packaging, agri-business, and IT services. The company is best known for its dominance in the cigarette market but has been diversifying aggressively into non-tobacco segments to balance growth and reduce regulatory risk.
ITC Share Price and Market Performance
In recent trading sessions, the ITC share price gained momentum after government discussions on GST restructuring. Despite a hike in GST on cigarettes, ITC’s diversified portfolio helped it maintain investor confidence. Analysts note that its steady FMCG growth, strong balance sheet, and consistent dividends continue to support valuations.
Dividend and Bonus History
ITC has a strong track record of rewarding shareholders. The company regularly announces dividends, making it a preferred stock for income-seeking investors. In the past, ITC has also issued bonus shares, further increasing shareholder value. For long-term investors, these factors add stability even when the share price faces short-term volatility.
GST Cut from 28% to 18%
The government’s GST changes have always impacted ITC’s core cigarette business. While taxes on cigarettes remain high, any favorable restructuring—such as moving FMCG essentials from 28% to 18%—provides a positive push to ITC’s non-tobacco business. This indirectly supports the ITC share price by improving margins in other segments like packaged food and personal care.
Multibagger Potential
For years, investors debated whether ITC could turn into a multibagger stock. While it has provided steady returns, critics point to slower growth in comparison to peers in FMCG. Supporters argue that ITC’s diversification, strong cash flow, and expansion plans could unlock value over the long term, especially with ₹20,000 crore investments planned in manufacturing and green projects.
Investor Outlook
For conservative investors, ITC remains a stable stock with consistent dividends and moderate growth. For aggressive investors, the possibility of re-rating exists if the FMCG business grows rapidly and regulatory clarity improves in cigarettes. The ITC share price outlook, therefore, remains balanced with steady upside potential.
FAQ
Q. What is the current ITC share price?
A: The ITC share price changes daily with market movements. Investors should check the NSE/BSE for live updates.
Q. Does ITC give regular dividends?
A: Yes, ITC is known for consistent dividend payouts, making it a favorite for income investors.
Q. Has ITC given bonus shares?
A: Yes, ITC has issued bonus shares in the past, rewarding its shareholders alongside dividends.
Q. Can ITC become a multibagger stock?
A: While ITC has delivered steady growth, its potential as a multibagger depends on faster expansion in FMCG and stable regulations in tobacco.
Q. How does GST affect ITC share price?
A: High GST on cigarettes limits growth in that segment, but lower GST on FMCG products supports ITC’s diversification strategy and benefits the share price.
Disclaimer
This article is for informational purposes only and should not be considered investment advice. The details on ITC share price, dividends, bonus, and GST impact are based on market reports and may change. Investors should consult financial advisors before making investment decisions.
