A well-diversified conglomerate with a strong presence across FMCG, Hotels, Paper & Packaging, Agri-business, and IT services is in the spotlight after mutual funds collectively invested Rs. 7,880 crore in the company during May. This significant inflow highlights growing investor confidence in the company’s diversified business model and long-term growth potential.
In May, ITC led the mutual fund buying charts, with investments totalling Rs. 7,880 crore, showing strong mutual fund confidence. It was followed by HDFC Bank, which saw stake purchases worth Rs. 5,800 crore, while Eternal ranked third with inflows of Rs. 5,300 crore.
Reason for Such a High Stake Increase
As of the latest shareholding pattern, DIIs hold 45.19 percent, followed by FIIs at 39.87 percent and Public holding at 14.90 percent. British American Tobacco had sold its stake worth over Rs. 11,500 Crore, and the top 3 buyers were SBI Mutual fund with Rs. 2,480 Crore buy, followed by ICICI Prudential Mutual fund worth Rs. 1,410 Crores, and Mirae Asset Mutual fund worth Rs. 1,224 Crore.
The rise in mutual fund stake in ITC post BAT’s Rs. 11,500 crore stake sale could be driven by high cash reserves with funds, ITC’s status as a blue-chip Nifty 50 stock, and its attractive dividend yield, making it a stable and appealing investment choice.
The company reported a 10.13 percent YoY increase in revenue from Rs. 17,038 Crore in Q4FY24 to Rs. 18,765 Crore in Q4FY25. On a QoQ basis, the company reported a minor decrease of 0.13 percent in revenue from Rs. 18,790 Crore in the previous quarter.
Also read: Market Opening Bell: Sensex Opens at 81,699; Nifty below 25,000 – Adani Ports, TCS, NLC India in Focus Today
Their Net profit saw an increase of 281.58 percent YoY from Rs. 5,191 Crore to Rs. 19,808 Crore for the same period. On a QoQ basis, the company reported an impressive increase of 295.13 percent in Net profit from Rs. 5,013 Crore in the previous quarter. The huge increase in Net Profit was largely because of the exceptional gain from the demerger of its hotel business
Out of the total revenue that the company generated in Q4FY25, FMCG accounted for 70.23 percent of the total revenue; however, revenue from Cigarettes accounted for 60.45 percent of total FMCG revenue. Agri Business’s contribution stood at 18.44 percent, followed by Paperboards, Paper & Packaging at 11.05 percent, and the rest of the revenue came from others.
ITC Limited is one of India’s leading and most diversified conglomerates, headquartered in Kolkata. Established in 1910 as the Imperial Tobacco Company of India, it has since evolved into a multi-business enterprise with a strong presence across several sectors. The company operates primarily in FMCG, Hotels, Paperboards and Packaging, Agri-business, and IT services.
Its FMCG segment is the most prominent, covering both cigarettes, where it holds a dominant market share with brands like Gold Flake and Classic, and a fast-growing portfolio of non-cigarette products such as Aashirvaad (staples), Sunfeast (biscuits), Bingo! (snacks), Yippee! (noodles), Savlon (personal care) and Classmate (stationery).
Written By Abhishek Das
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
