ITC remains one of the most widely held stocks in the Indian equity market, particularly among mutual funds, given its large-market-cap status, steady cash flows and diversified business model. Despite the recent sharp correction following the cigarette excise duty hike, mutual funds have continued to hold a significant and growing stake in the company over the past year.
Mutual funds increased stake over the last year
As of the September quarter, mutual funds collectively held a 14.3% stake in ITC, up from 12.8% in September 2024. This increase highlights sustained institutional interest in the stock, even amid regulatory and sector-specific headwinds.
Key mutual funds holding ITC
Some of India’s largest and most prominent mutual fund houses feature among ITC’s top shareholders:
- SBI Mutual Fund: 3.26% stake
- ICICI Prudential Mutual Fund: 2.28% stake
- Nippon Life India Mutual Fund: 1.36% stake
- UTI Mutual Fund: 1.30% stake
- PPFAS Mutual Fund: 1.17% stake
- Mirae Asset Mutual Fund: 1.06% stake
Together, these funds account for a sizeable portion of ITC’s institutional ownership and play a key role in influencing stock liquidity and price movements.
Why ITC remains a core MF holding
ITC’s appeal for mutual funds stems from its dominant position in cigarettes, strong cash generation, and growing presence in FMCG, hotels, paperboards and agribusiness. Its zero promoter holding structure also ensures higher free float, making it suitable for large institutional allocations.
However, the recent excise duty hike on cigarettes has led to earnings downgrades and price target cuts, which explains the sharp sell-off despite strong long-term institutional ownership.
Retail participation also remains strong
Alongside mutual funds, ITC has a large retail investor base. As of the September quarter, the company had nearly 36 lakh retail shareholders, holding 11.2% of the equity, further underlining its status as one of India’s most widely owned stocks.
What to watch ahead
While mutual fund ownership remains high, future flows will depend on how brokerages reassess volume growth, pricing power and margin impact following the tax hike. Any clarity on demand resilience in the cigarette segment could influence institutional positioning going forward.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
