2 Top ITC Group Stocks to Watch for Future Multibagger Potential: ITC and ITC Hotels
- October 19, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
ITC Rs 263.50. ITC Hotels Rs 162.48. Market caps from Rs 32,673 crore to Rs 3.27 lakh crore. Data as of 16 Oct 2026.
Quick Answer
ITC and ITC Hotels are the 2 picks in this ITC Group stocks watchlist, with market caps between Rs 32,673 crore and Rs 3.27 lakh crore. ITC stands out for the highest return on equity at 28.53%, while ITC Hotels offers the strongest latest-quarter profit growth at 36.05%. PE ratios run from 16.22 to 37.61, so compare each one with its industry PE before investing. All figures are as of 16 October 2026.
ITC Group stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. ITC and ITC Hotels meet that test, with market caps from Rs 32,673 crore to Rs 3.27 lakh crore and ITC offering the highest return on equity at 28.53%. The ITC Group spans one of India’s largest FMCG businesses and a premium hotel chain that was demerged in January 2025.
This list covers listed ITC Group companies with complete, verifiable financials, ranked by market capitalisation. Not every name here is a largecap, so the list takes the leading companies of the sector by market capitalisation. Investors screening ITC Group stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 16 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are ITC Group Stocks and Why Do They Attract Multibagger Interest?
ITC Group stocks are shares of the parent and its hotel arm. ITC sells cigarettes, packaged foods, personal care products and paper, while ITC Hotels runs a premium hotel chain that was demerged and listed in January 2025.
Daily consumer spending and premium travel both grow with household incomes. Companies with strong brands, high returns and healthy cash flows are the ones investors compare in ITC Group stocks.
ITC Group Stocks at a Glance: Price, Market Cap, PE and ROE
Prices are closing prices as of 16 October 2026. ITC combines the lowest PE of the group, 16.22, with the highest return on equity, 28.53%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Debt to Equity | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| ITC | 263.50 | 3,27,360 | 16.22 | 34.68 | 28.53% | 0.03 | 253.15 to 426.40 |
| ITC Hotels | 162.48 | 32,673 | 37.61 | 36.78 | 7.01% | 0.01 | 137.30 to 226.63 |
ITC: Return on Equity of 28.53%
ITC combines cigarettes with FMCG, paperboards, packaging and agri-business. It reported FY26 revenue of Rs 81,294.27 crore, up 4.41% year on year, and net profit of Rs 21,018.15 crore, up 4.90%. Net profit has compounded at 7.91% a year since FY22, while revenue has grown 6.79% a year. Operating margin was 33.18% in FY26. The debt-to-equity ratio is 0.03, which keeps interest costs low.
Revenue for the June 2026 quarter rose 26.74% to Rs 30,179.01 crore, at an operating margin of 21.52%. Domestic institutions raised their holding from 47.41% in September 2025 to 49.82% in September 2026. The stock trades at a PE of 16.22 against an industry PE of 34.68, below the sector average, with a return on equity of 28.53%. The dividend yield is 5.55%.
ITC Hotels: Debt-to-Equity of 0.01
ITC Hotels runs luxury and premium hotel brands such as ITC Hotels, Welcomhotel, Storii and Fortune across India. It reported FY26 revenue of Rs 4,331.34 crore, up 19.39% year on year, and net profit of Rs 821.26 crore, up 28.80%. Operating margin was 38.53% in FY26. The debt-to-equity ratio is 0.01, which keeps interest costs low.
The stock trades at a PE of 37.61 against an industry PE of 36.78. In the June 2026 quarter, revenue rose 15.68% to Rs 994.54 crore and net profit grew 36.05% to Rs 181.91 crore. Domestic institutions raised their holding from 20.61% in June 2025 to 23.99% in June 2026.
ITC Group Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these ITC group company shares. Latest quarter means the most recent reported quarter for each company, and only metrics that are positive for every company are shown.
| Stock | Revenue (Rs Cr) | Net Profit (Rs Cr) | Revenue Growth (YoY) | Latest Quarter Revenue Growth | Net Profit Growth (YoY) | Operating Margin (Latest Quarter) |
|---|---|---|---|---|---|---|
| ITC | 81,294.27 | 21,018.15 | 4.41% | 26.74% | 4.90% | 21.52% |
| ITC Hotels | 4,331.34 | 821.26 | 19.39% | 15.68% | 28.80% | 38.17% |
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Institutional Holding in ITC and ITC Hotels
Institutional holding shows who is backing these ITC Group stocks alongside the promoter. The table uses the latest reported quarter for each. ITC has the deepest institutional backing, with FII and DII together holding 83.04% as of September 2026. Domestic institutions increased their holding over the past year in ITC (from 47.41% to 49.82%) and ITC Hotels (from 20.61% to 23.99%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| ITC | Nil | 33.22% | 49.82% | 16.96% | September 2026 |
| ITC Hotels | 39.85% | 11.61% | 23.99% | 24.55% | June 2026 |
Risks to Weigh in ITC Group Stocks
Being careful with ITC Group stocks means looking at what can slow the story as well as what can speed it up. Four points matter most:
- Consumer earnings depend on input costs and taxes.
- Hotel earnings are seasonal.
- Valuation: ITC Hotels trades at a PE of 37.61 against an industry PE of 36.78, so earnings need to keep growing to support the price.
- Concentration: Holding both names puts the allocation in one sector, so size each position to match your risk appetite.
How to Choose Between ITC Group Stocks
Picking from ITC Group stocks comes down to four checks, applied in order.
- Check balance sheet strength first, and prefer a debt-to-equity ratio below 1 for non-financial companies.
- Compare each PE with the industry PE (34.68 to 36.78) and ask whether the growth rate justifies any gap.
- Track revenue growth, the operating margin and the dividend payout in every quarterly result.
- Stagger entries across quarters and review institutional holding every reporting season.
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Conclusion
Among ITC and ITC Hotels shares, ITC stands out for the highest return on equity at 28.53% and ITC Hotels for the strongest latest-quarter profit growth at 36.05%. Which one suits a portfolio depends on how much valuation risk it can carry, so staggering entries and reviewing each quarterly result is a sound habit. Investors comparing ITC Group stocks should rank them on growth, financial strength and the price paid, and anyone who wants personalised guidance can consult a SEBI-registered advisor before acting.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions on ITC Group Stocks to Watch
Which are the best ITC Group stocks to watch for multibagger potential?
Ans. ITC and ITC Hotels are the 2 names this list highlights, with market caps of Rs 3,27,360 crore and Rs 32,673 crore respectively. ITC is notable for the highest return on equity at 28.53%. ITC Hotels stands out for the strongest latest-quarter profit growth at 36.05%. These are watchlist names for ITC Group stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is ITC a good stock for long-term investors?
Ans. ITC has a return on equity of 28.53%, a PE of 16.22 against an industry PE of 34.68 and a market cap of Rs 3,27,360 crore. Net profit has compounded at 7.91% a year since FY22, and FY26 revenue rose 4.41% while June 2026 quarter revenue grew 26.74%. Long-term returns in ITC Group stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can ITC Hotels become a multibagger from here?
Ans. ITC Hotels has a market cap of Rs 32,673 crore. A multibagger outcome in ITC Group stocks requires earnings to keep growing faster than the market for several years. FY26 revenue rose 19.39%, and June 2026 quarter net profit grew 36.05%. At a PE of 37.61 against an industry PE of 36.78, valuation should be checked against that growth before investing.
What is the market cap of ITC and ITC Hotels?
Ans. As of 16 October 2026, ITC has a market cap of Rs 3,27,360 crore and ITC Hotels has a market cap of Rs 32,673 crore. ITC is the largest of the group. Market cap changes daily with the share price, so check the latest figure on the Univest Screener or on NSE before taking a decision on stocks of the ITC Group.
What are the risks of investing in ITC Group stocks?
Ans. The main risks are tax changes on tobacco, higher input costs and seasonal swings in hotel demand. Companies with strong brands and varied income handle these better. ITC Hotels trades at a PE of 37.61 against an industry PE of 36.78, so earnings growth needs to hold up.
Is ITC trading below its industry PE?
Ans. ITC trades at a PE of 16.22 against an industry PE of 34.68. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 7.91% a year since FY22 and FY26 revenue rose 4.41%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in ITC and ITC Hotels?
Ans. As of the latest reported quarter, FII and DII together hold 83.04% of ITC (33.22% and 49.82%) and 35.60% of ITC Hotels (11.61% and 23.99%). Rising institutional holding is a useful signal in ITC Group stocks, though it should be read with earnings trends rather than on its own.
