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How to Buy ITC Limited (ITC) Shares - Investment in ITC Limited (ITC) Stock

30 August 2025
5 min to read
How to buy ITC Limited (ITC) shares – Investment in ITC Limited (ITC) stock

Thinking about owning a piece of India's consumer goods powerhouse? ITC Limited blends tradition with innovation—perfect for new investors. With iconic brands from cigarettes to packaged foods, this company touches millions of Indian households daily. We'll break down everything: current stock performance, smart entry points, and why 2025 offers unique opportunities despite market challenges.

📈 ITC Stock: Price, Trends, and What’s Next

As of August 30, 2025, ITC Limited (ITC) trades at ₹409.75 on the National Stock Exchange of India. Mark your calendar: October 23, 2025 is absolutely critical. That’s when ITC releases its Q2 earnings report, and historically these announcements create significant price movements.

How Earnings Reports Move ITC Stock

Looking at recent history, ITC’s stock shows predictable patterns around earnings season. The company just reported Q1 FY 2025-26 results on August 1, 2025, showing a 3% year-on-year increase in consolidated net profit to ₹5,244 crore. However, operating profit margin declined by 547 basis points to 31.7%, missing analyst estimates.

Here’s what typically happens around ITC earnings:

  • Positive surprises (like beating revenue estimates) typically boost prices by 2-4% within days
  • Margin pressures (like the recent OPM decline) cause short-term dips of 1-3%
  • Volume growth announcements (cigarette volumes grew 6-8% last quarter) provide sustained upward momentum
  • Strategic updates about the ‘Bharat First’ strategy often generate 1-2% gains

The pattern is clear: ITC rewards patience. Short-term dips often create buying opportunities for long-term investors who believe in the company’s diversification strategy.

6-Month Price Journey (March-August 2025)

ITC shares have experienced a 7% decline over the past six months relative to benchmark indices, showing some investor caution despite solid fundamentals. Here’s how it unfolded:

March 2025: ₹416 average (post-budget stability)
April 2025: ₹425-426 range (Q4 expectations building)
May 2025: ₹418 average (post-earnings consolidation)
June 2025: ₹416 average (monsoon concerns affecting sentiment)
July 2025: ₹412 average (FMCG margin pressure worries)
August 2025: ₹409-410 range (current levels, finding support)

Why the relative underperformance? Three main factors:

  1. Margin pressures in FMCG and paper segments worried investors
  2. Regulatory concerns about potential tobacco regulations
  3. Broader market rotation away from defensive stocks

However, the recent bullish technical signals with 5-day and 10-day EMA crossovers on August 29 suggest potential reversal ahead.

🔮 Price Forecast: 2025-2030

Based on current analyst projections and company fundamentals, here’s what to expect:

2025 Year-End: ₹397-445 range (depending on October earnings) → HOLD
2026: ₹332-446 range (diversification benefits materializing) → ACCUMULATE
2028: ₹261-567 range (long-term transformation payoff) → BUY
2030: ₹292-566 range (mature diversified conglomerate) → STRONG BUY

The wide ranges reflect different analyst views—some conservative due to regulatory risks, others optimistic about ITC’s successful diversification.

Verdict: Ideal for long-term accumulation. Current levels offer good entry points for patient investors. Short-term traders should wait for post-October earnings clarity.

⚠️ Key Risks vs. Positive Signals

Risks to Consider

  • Regulatory headwinds: Potential increased taxation or advertising restrictions on tobacco products could impact 67% of revenue (ITC Business Analysis)
  • Margin pressures: Operating profit margin declined 547 basis points YoY to 31.7% in Q1 FY26, missing estimates
  • Competition intensity: FMCG segment faces rising competition from both domestic and international players
  • Currency fluctuations: 21% revenue from agri-business exports exposes ITC to currency volatility

Green Lights for 2025

  • Diversification success: 65% of revenue now from non-cigarette businesses—strategy working (FY25 Annual Report)
  • Volume growth: Cigarette volumes grew 6-8% in Q1 FY26, showing resilience
  • Strategic mergers: Amalgamation with Sresta Natural Bioproducts and Wimco Limited expanding portfolio
  • Macro tailwinds: Chairman Sanjiv Puri cites easing interest rates, better weather, and GST overhaul supporting demand recovery

🛡️ What Should a Beginner Trader Do Today?

  1. Start small: Begin with 1-2 shares to understand price movements without significant risk
  2. Use limit orders: Set maximum buy prices around ₹405-410 to avoid overpaying during volatility
  3. Watch October 23: Plan your next move after Q2 earnings clarity—this could set the trend for months
  4. Think long-term: ITC’s transformation story needs 2-3 years to fully play out

Humorous take: “Trading ITC is like their cigarette business—everyone knows it’s risky, but the addictive fundamentals keep bringing investors back for more!”

✅ How to Buy ITC Limited (ITC) Shares – Step by Step

Step Action Why It Matters
1 Choose a DEMAT account provider Essential for holding Indian stocks electronically
2 Complete KYC verification Mandatory for all Indian stock market participants
3 Link your bank account Enables seamless fund transfers for trading
4 Transfer funds to trading account Typically takes 1-2 hours for bank transfers
5 Search for “ITC” or “500875” Use either ticker symbol or ISIN code
6 Select order type (Limit recommended) Control your entry price instead of market price
7 Set quantity and price Start with small quantities if you’re new
8 Review and confirm order Double-check details before execution
9 Monitor your position Use stop-loss orders for risk management
10 Plan exit strategy Decide profit targets and loss limits in advance

💡 Why Pocket Option Fits New Investors

For those starting their investment journey, Pocket Option offers several advantages that make entering the Indian market accessible:

  • Minimum deposit just $5 — perfect for testing strategies with minimal risk
  • 1-minute KYC process — upload any government ID and start trading instantly
  • 100+ withdrawal methods — including UPI, bank transfer, and popular e-wallets
  • Real-time NSE data — accurate pricing for informed decision making
  • Fractional shares available — buy portions of expensive stocks like ITC

The platform’s user-friendly interface makes it ideal for beginners who want to dip their toes into Indian equities without overwhelming complexity.

🌍 ITC in 2025: India’s Diversified Giant

ITC Limited dominates multiple sectors with a market capitalization of ₹5.13 trillion. Beyond its famous cigarette business (75% market share), the company has successfully transformed into a diversified FMCG powerhouse with thriving operations in:

  • Packaged foods (Aashirvaad, Sunfeast, Bingo! brands)
  • Personal care products (Fiama, Vivel, Engage)
  • Agri-business (exports to 60 countries)
  • Paperboards and packaging
  • Hotels (luxury properties across India)

The company’s ‘Bharat First’ strategy focuses on domestic growth and product diversification, with 65% of revenue now coming from non-cigarette businesses. This strategic shift has positioned ITC for sustainable long-term growth despite regulatory challenges in its traditional tobacco segment.

2025 Interesting Fact: ITC’s headquarters in Kolkata features one of India’s largest corporate rainwater harvesting systems—collecting over 15 million liters annually! This commitment to sustainability reflects their broader corporate philosophy beyond just profits.

FAQ

What is the minimum investment required to buy ITC shares?

There's no fixed minimum—you can start with just one share (currently around ₹410) or even fractional shares through some platforms.

How often does ITC pay dividends?

ITC has a consistent dividend history, typically paying quarterly dividends. The current yield is approximately 3.50%.

Is ITC a good stock for long-term investment?

Yes, despite short-term volatility, ITC's diversification strategy and strong market position make it attractive for long-term investors seeking stable returns.

What are the tax implications of investing in ITC?

Dividends are taxed at your income tax rate, while capital gains depend on holding period—short-term (under 1 year) taxed at 15%, long-term at 10% over ₹1 lakh gains.

How can I track ITC's performance regularly?

Use financial news websites, trading apps with portfolio tracking, or set up price alerts through your brokerage platform.

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