ITC Share: Growth Drivers, GST Impact & 2025 Outlook
Why ITC Share Is Gaining Investor Attention
ITC Limited, a diversified conglomerate with interests in FMCG, hospitality, and agri-business, has emerged as a resilient player in India’s stock market. With its ITC share price reflecting steady growth, investors are eyeing its strategic moves amid regulatory shifts like GST 2.0 and aggressive expansion plans.
Recent Developments Shaping ITC’s Trajectory
- ₹20,000-crore capex commitment to boost FMCG and agri-business segments
- GST Council’s proposed 40% tax on sin goods, impacting cigarette pricing
- Focus on sustainability and digital transformation
GST 2.0: A Double-Edged Sword for ITC Share?
The GST Council’s plan to raise taxes on cigarettes to 40% could affect ITC’s profitability in the short term. However, Chairman Sanjiv Puri emphasized that ITC share growth will be driven by diversification beyond tobacco. A recent analysis argues that excessive taxation may inadvertently boost illicit trade, underscoring the need for balanced policies.
Expansion Beyond Tobacco: Key Focus Areas
- FMCG: Launching premium products in snacks, dairy, and personal care
- Agri-Business: Strengthening supply chains via Farm-to-Fork initiatives
- Hotels: Adding 24 new properties by 2026
How Does ITC Stack Up Against Competitors?
While ITC share gains momentum, rivals like Hindustan Unilever (HUL) are also expanding their FMCG portfolios. For insights into sector trends, read our analysis of HUL Share Price: Trends, Analysis & 2025 Investor Outlook.
Investment Outlook: Should You Hold or Buy?
Analysts remain bullish on ITC due to:
- Strong rural distribution network
- Reduced dependence on tobacco (now 38% of revenue)
- Dividend yield of ~4%
With GST 2.0 reforms expected by Diwali 2025, ITC’s diversified model positions it for long-term stability.
Final Thoughts
ITC share represents a unique blend of defensive and growth attributes. While regulatory changes pose challenges, its ₹20,000-crore investment plan signals confidence in non-tobacco verticals. Investors should watch quarterly FMCG performance and GST updates closely.
What’s your take on ITC’s strategy to reduce tobacco dependency? Share your views below!
Trending in India • 04 Sep 2025 05:01
Source: https://www.deccanchronicle.com/lifestyle/health-and-well-being/why-taxing-cigarettes-on-mrp-could-do-more-harm-than-good-1901353
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