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📈 Live Share Price Snapshot (as of August 4, 2025)
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ITC shares are trading around ₹419, up approximately 0.6%–1% versus the previous close of ₹416.45 (The Economic Times, The Economic Times)
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Price gains have lifted the stock past key resistance levels like the 20‑day and 100‑day moving averages (The Economic Times)
📰 Financial Highlights: Q1 FY26 Results
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Consolidated net profit rose ~3–4.9% YoY to between ₹5,244–₹5,343 crore, with revenue increasing by ~19.5–20.9%, driven by strong rural consumption and cigarette growth (The Economic Times, Stocktwits, Angel One, Reuters)
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Cigarette revenue grew ~8% YoY, and volume jumped 6%, outperforming broker estimates (Reuters, livemint.com)
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Agricultural business grew a whopping 39% YoY, boosting overall topline to approximately ₹210.6 billion (Reuters)
🔍 Valuation & Fundamentals
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P/E Ratio (TTM): ~15×, well below sector averages (~28× industry) (groww.in, The Economic Times)
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P/B Ratio: ~7.4×, reflecting strong brand equity and low debt (screener.in, groww.in)
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Dividend Yield: ~3.44–3.48%, with payouts over ₹7 per share earlier in 2025 (The Economic Times, screener.in)
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Debt-free balance sheet, high return on equity (~28%) and consistent dividend payouts (~79%) (screener.in, groww.in)
📈 Analyst Ratings & Price Targets
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Jefferies: Maintains Buy with a target of ₹550 (~26% upside) (stockanalysis.com)
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Motilal Oswal: Reiterates Buy, valuing ITC at ₹500 based on sustained mid-single-digit volume growth and FMCG recovery (livemint.com, Stocktwits)
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Other brokerages (Citi, Macquarie, Morgan Stanley) also issue Buy/Outperform ratings with targets ranging up to ₹500 (moneycontrol.com, Stocktwits)
🧭 Strategic Developments & Growth Drivers
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ITC has announced a ₹20,000 crore investment over the next 5–6 years, aimed at enhancing FMCG margins and scaling innovations like food‑tech business under "ITC Next" strategy (timesofindia.indiatimes.com, timesofindia.indiatimes.com)
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Recent acquisitions such as Sresta Natural Bioproducts (June 2025) and Aditya Birla’s pulp & paper unit (March 2025) expand ITC’s footprint in packaging and agribusiness (en.wikipedia.org)
✅ Why ITC Remains Attractive for Investors
| Factor | Highlights |
|---|---|
| Stable earnings | Consistent profit growth and broad-based revenue recovery |
| High dividend yield | ~3.5%, with strong payout track record |
| Low valuation | Relative P/E advantage compared with sector peers |
| Growth initiatives | FMCG expansion, investments, acquisitions, and integrations |
⚠️ Risks to Monitor
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Margin pressures in FMCG and paper segments due to softer rural/urban demand and rising input costs (livemint.com, The Economic Times)
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Modest sales growth over five years (~8.8%) despite high historical margins (screener.in)
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Conglomerate structure may weigh on valuation clarity; management has not yet committed to further demergers beyond hotels (en.wikipedia.org, timesofindia.indiatimes.com)
🧠 Final Thoughts & Investment Outlook
ITC share price is currently hovering in the ₹417–420 zone after a solid Q1 showing backed by strong cigarette and agribusiness performance. With attractive valuations, one of the highest dividend yields among large-caps, and an aggressive medium-term investment blueprint, ITC remains a compelling Buy candidate for medium‑term investors.
⚠️ However, keep an eye on margin trends in the FMCG business and macroeconomic headwinds like inflation or rural slowdown. Conservative investors might prefer less cyclicality or steadier growth profiles.
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