Predicting the Future Share Price of ITC


ITC Limited is one of the leading conglomerates in India, comprising a diversified business portfolio that spans across FMCG, hotels, paperboards, and packaging, among others. The company’s stock has been a favorite of investors, given its consistent performance over the years. However, the share price has witnessed significant fluctuations in the past few years, causing concerns among investors. Thus, this article aims to analyze the potential factors that might affect the future share price of ITC.

Current Performance and Market Trends

As of August 2021, ITC’s stock price stood at INR 215 per share. Over the past year, the share price has fluctuated between INR 167 to INR 216, signaling a volatile nature of the stock. The company’s financial performance in the past year has also been moderate, with a net profit of INR 13,000 crores in FY21, representing a growth of 5.5% YoY. Moreover, the FMCG segment, which contributes over 80% of ITC’s revenue, has been witnessing intense competition from domestic and international players, impacting the company’s market share and growth prospects.

One of the factors that have been affecting the share price of ITC is the government’s recent regulations on the tobacco industry. The government has been implementing stringent norms to reduce tobacco consumption, which has been impacting ITC’s revenue and profit growth. Moreover, increasing health awareness among consumers has been driving demand for alternative products, such as nicotine gums, e-cigarettes, and vaping, which might hamper ITC’s growth in the tobacco segment.

H2> Factors likely to impact Future Share Price

The future performance and potential growth of ITC’s share price would depend on various factors, including:

1. Diversification of Business Portfolio: In recent years, ITC has been diversifying its business portfolio, expanding into new segments such as dairy, spices, and beverages. This move can prove beneficial for the company, given the potential growth prospects in these segments, and reduce its reliance on the tobacco business. Any positive developments in these segments can boost the company’s future share price.

2. Regulations and Taxation: The government’s regulations and taxation policies on the tobacco business in India can significantly impact ITC’s future revenue and profits. Any relaxation or tightening of these policies can affect the company’s future growth prospects, thus impacting its share price.

3. Competition and Market Share: The FMCG segment has been witnessing intense competition from domestic and international players, which can impact ITC’s market share and growth prospects. Any substantial loss in market share can lead to a decline in the company’s future share price.

4. Adapting to New Trends: Changing consumer preferences, the emergence of e-commerce, and technological advancements have been transforming the FMCG industry globally. ITC needs to adapt to these changing trends to remain competitive and relevant in the market. Any positive moves in this direction can lead to an increase in the company’s future share price.


In conclusion, ITC’s future share price would depend on various internal and external factors that impact the company’s growth prospects. While the company’s diversification efforts and expanding business portfolio can prove beneficial, the stringent government regulations and increasing competition in the FMCG segment can impact its performance. Therefore, investors need to keep a close watch on these potential factors and trends to make informed decisions regarding their investment in ITC’s stock.