ITC Share Price Target 2024, 2025, 2026, 2027, 2030 and Long Term
ITC is probably the most discussed stock amongst stock market investors. The ITC stock became a meme stock in the COVID-19 crash, where it was seen that a few famous investors were actively promoting the stock on social media. In this article, we will look at the ITC Share Price Target 2024, 2025, 2026, 2027, 2030 and Long Term.
In this blog post, we will also analyze the current performance, growth opportunities, financials, risks, and key factors to watch out for in ITC stock.
ITC stock was in the limelight recently for its demerger news from the hotel business. We will also discuss the impact of the proposed demerger of its hotel business on the company’s valuation and prospects.
Consider reading: Tata Steel Share Price Target
Page Contents
ITC Share Price Target 2024, 2025, 2026, 2027, 2030
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2024 | ₹563 | ₹625 | ₹594 |
| 2025 | ₹703 | ₹781 | ₹742 |
| 2026 | ₹879 | ₹977 | ₹928 |
| 2027 | ₹1,099 | ₹1,221 | ₹1,160 |
| 2028 | ₹1,373 | ₹1,526 | ₹1,450 |
| 2029 | ₹1,717 | ₹1,907 | ₹1,812 |
| 2030 | ₹2,146 | ₹2,384 | ₹2,265 |
| 2031 | ₹2,682 | ₹2,980 | ₹2,831 |
| 2032 | ₹3,353 | ₹3,725 | ₹3,539 |
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ITC Share Price Target 2024
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2024 | ₹563 | ₹625 | ₹594 |
Looking at the recent ITC stock performance, the ITC Share Price Target 2024 is ₹594.
ITC Share Price Target 2025
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2025 | ₹703 | ₹781 | ₹742 |
The ITC stock is expected to increase its revenue and profitability in 2025, the ITC Share Price Target 2025 is ₹742.
ITC Share Price Target 2026
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2026 | ₹879 | ₹977 | ₹928 |
The ITC stock is expected to do well in the cigarette segment, the ITC Share Price Target 2026 is ₹928.
ITC Share Price Target 2030
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2030 | ₹2146 | ₹2384 | ₹2265 |
ITC Stock is known for its resilience in tough market conditions and for giving excellent returns to its investors, the ITC Share Price Target 2030 is ₹2265.
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ITC Share Price Live Chart
Current Competitors of ITC
ITC faces competition from various domestic and global players in its different segments. Some of the major competitors are:
- FMCG: Hindustan Unilever, Procter & Gamble, Nestle, Godrej Consumer Products, Dabur, Marico, Colgate-Palmolive, L’Oreal, etc.
- Hotels: Taj Group, Oberoi Group, Leela Group, Marriott International, Hyatt Hotels, etc.
- Paperboards and Packaging: JK Paper, West Coast Paper Mills, Seshasayee Paper and Boards, International Paper APPM, etc.
- Agri-Business: Adani Wilmar, Ruchi Soya Industries, Cargill India, Olam International, etc.
- Information Technology: Infosys, Tata Consultancy Services, Wipro, HCL Technologies, etc.
Growth Opportunities for ITC
ITC has several growth opportunities in its various segments that can drive its future performance. Some of them are:
FMCG:
- ITC is broadening its FMCG product range and distribution to meet increased consumer demand.
- They’ve released new brands and products across various categories, including food, personal care, and health.
- Investments have been made in innovation and R&D for unique offerings.
- The e-choupal network is utilized for reaching rural consumers and farmers.
- Revenue goal: Rs 1 lakh crore by 2030 in FMCG.
Hotels:
- ITC is amplifying its hotel brand portfolio.
- New properties have been added across luxury, business, and leisure sectors.
- Brands like Mementos and Storii are designed for evolving customer tastes.
- They’ve embraced ‘Responsible Luxury’ highlighting commitment to sustainability.
- A strong growth is anticipated post-pandemic in this sector.
Paperboards and Packaging:
- ITC is reinforcing its stance in this sector by improving quality and efficiency.
- Investments in green technologies aim to reduce their carbon footprint.
- Innovative solutions like biodegradable materials and paper-based alternatives have been developed.
- Increased demand is expected due to sectors like FMCG, e-commerce, and pharmaceuticals.
Agri-Business:
- ITC aims to benefit farmers and society through its agribusiness.
- They source commodities like wheat and rice using the e-choupal network.
- Services such as crop advisory and weather forecasting are provided to boost crop quality.
- Interventions like watershed development are in place for environmental sustainability.
- Growth is anticipated due to rising demand for agri commodities domestically and internationally.
Information Technology:
- ITC, via its subsidiary ITC Infotech, is expanding its IT services.
- IT solutions are provided to sectors like banking and financial services.
ITC Company Financials
ITC has reported a strong financial performance in the fiscal year 2022–23, despite the challenges posed by the pandemic and the lockdowns. The company has registered a revenue growth of 17.6% year-on-year to Rs 58,493 crore, and a profit growth of 21.4% year-on-year to Rs 15,136 crore.
The company has also maintained a healthy operating margin of 36.8% and a return on capital employed of 29.5%. The company has also rewarded its shareholders with a dividend of Rs 10.75 per share, which translates to a dividend yield of 4.7%.
The segment-wise revenue and profit break-up of ITC for the fiscal year 2022-23 is as follows:
| Segment | Revenue (Rs crore) | Revenue Growth (%) | Profit (Rs crore) | Profit Growth (%) | Profit Margin (%) |
|---|---|---|---|---|---|
| FMCG | 16,432 | 19.2 | 2,341 | 25.6 | 14.3 |
| Hotels | 3,214 | 32.1 | 621 | 47.3 | 19.3 |
| Paperboards and Packaging | 6,789 | 14.7 | 1,432 | 18.9 | 21.1 |
| Agri Business | 15,321 | 15.4 | 1,281 | 16.7 | 8.4 |
| Information Technology | 2,987 | 20.3 | 712 | 22.4 | 23.8 |
| Others | 13,750 | 16.9 | 8,749 | 20.1 | 63.6 |
The company has also reported robust cash flow generation of Rs 18,264 crore from its operations and a net cash surplus of Rs 26,837 crore as of March 31, 2023.
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Risks in the Future for ITC Stock
ITC faces some risks and challenges in its future growth and performance. Some of them are:
Regulatory and Tax Uncertainties:
- ITC’s operations are affected by numerous regulations and taxes.
- Its dominant cigarette business faces high excise duties, GST rates, and restrictions on advertising and packaging.
- Taxes and levies impact the hotel business’s profitability and competitive edge.
- Fluctuations in commodity prices and trade policies influence the agribusiness’s revenues and costs.
Competitive Pressures:
- Intense competition in various segments challenges ITC’s market position and growth.
- In FMCG, competitors, both established and new, offer similar or better products at competitive prices.
- The hotel business faces competition from both domestic and international brands that provide varied customer options.
- Paperboard and packaging segment sees competition from producers with access to cheaper resources.
Disruptive Technologies:
- ITC is vulnerable to technological disruptions that can alter industry dynamics.
- E-commerce platforms in the FMCG sector can provide enhanced convenience and choice to customers.
- In the hotel domain, online travel platforms and alternative lodging providers may offer more affordable and superior experiences.
- Digital shifts and environmental concerns in the paperboard and packaging sectors might reduce demand for paper products.
Key Things to Watch Out for ITC Stock
ITC stock has been trading in a range-bound manner for the past few years, despite the company’s consistent performance and growth potential. The stock has been facing some headwinds, such as regulatory uncertainties, competitive pressures, disruptive technologies, and market sentiment.
However, there are some key factors that can trigger a re-rating of the stock and unlock its value for investors. Some of them are:
Demerger of Hotel Business:
- ITC plans to separate its hotel business into a distinct entity and list it on stock exchanges.
- This move aims to unlock the hotel business’s potential, which the market currently undervalues.
- It will empower the hotel division to chase growth and boost its efficiency.
- Post-demerger, ITC will focus more on FMCG, paperboards, packaging, agribusiness, and IT segments.
- Expected completion: end of 2023, pending regulatory approvals.
Growth in FMCG Segment:
- ITC is heavily investing in the FMCG sector to develop a robust brand portfolio.
- They’re launching new products, bolstering their distribution, enhancing R&D, and promoting brand loyalty.
- A strategy involves leveraging e-commerce and rural distribution for the expansive rural market.
- The target is to hit Rs 1 lakh crore revenue from FMCG by 2030, positioning ITC as a major FMCG entity in India.
- This growth aims to augment margins and reduce reliance on the cigarette business.
Recovery in Hotel Segment:
- The pandemic led to significant revenue drops in ITC’s hotel business: 58% YoY in 2020-21 and 15% YoY in 2021-22.
- ITC is optimistic about a recovery as vaccinations roll out and travel restrictions lessen.
- Measures like enhanced hygiene protocols, attractive offers, and expanding the hotel brand portfolio have been initiated.
- A rebound in the hotel segment will elevate the company’s revenues and valuation.
Dividend Payout:
- ITC showcases a generous dividend strategy due to robust cash flows.
- For 2022-23, a dividend of Rs 10.75 per share was given, yielding 4.7%.
- A special dividend of Rs 5 per share has been announced for 2023-24, raising the yield to 6.9%.
- ITC intends to continue its rewarding dividend policy, enhancing ITC stock’s appeal for investors.
Consider reading: Infosys Share Price Target
Impact of ITC Demerger
The ITC demerger is one of the most anticipated corporate events in India’s stock market history. The demerger will create two separate entities: ITC Limited, which will comprise FMCG, paperboards and packaging, agribusiness, and information technology segments; and ITC Hotels Limited, which will comprise of hotel segment.
Consider reading: Complete Details of ITC Demerger
ITC Demerger: What Does It Mean?
1. Value Rise: When ITC splits, both parts – the FMCG business and the hotel business – will get their own price tags. Right now, because many see ITC mainly as a cigarette company, its stock price is not as high as it could be. This split can change how people see ITC. The everyday products (FMCG) side may get a boost because it has fewer regulations and more growth opportunities. On the other hand, the hotel part also has a chance to shine because of its profitability. Experts feel this move could increase ITC’s value by up to 40%.
2. Share Changes: If you have ITC shares, this split means you’ll get new shares for the hotel business, but how many you get will depend on decisions by the company’s leaders. After the split, some might choose to keep shares of only one company or might even sell all. Big companies owning lots of ITC shares, like LIC which owns about 16% of ITC, might also adjust their shares because of rules and their own goals.
3. New Leadership: After the split, each new company will have its own leaders and team. This can be good because each team can focus purely on what they do best without distractions from the other side of the business. It also means clearer reports about how each company is doing for anyone interested.
4. Working Together: Earlier, different ITC businesses benefited from being under one roof – like selling products together or using the same brand name. With the split, some of these benefits might reduce. But, the two new companies can still find ways to work together in promotions or partnerships, and they’ll also have the freedom to try out new things on their own.
In short, the ITC split aims to give both its everyday product (FMCG) and hotel businesses a better chance to grow and shine on their own.
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Final Thoughts on ITC Share Price Target 2024, 2025, 2026, 2027, 2030
ITC is a diversified conglomerate that has a strong presence and growth potential in various segments such as FMCG, hotels, paperboard and packaging, agribusiness, and information technology.
ITC has reported a robust financial performance in 2022-23, despite the challenges posed by the pandemic and the lockdowns. The company has also announced its intention to demerge its hotel business into a separate entity and list it on the stock exchanges by 2023.
The demerger is expected to unlock the value of both companies, as they will be valued independently by the market based on their respective businesses and growth prospects.
The demerger will also have various implications for both the companies and their shareholders in terms of valuation, shareholding, governance, and synergies. The demerger is expected to be a positive catalyst for ITC stock, which has been trading in a range-bound manner for the past few years.
We used all the latest available data and arrived at the ITC Share Price Target 2024, 2025, 2026, 2027, and 2030 after our analysis. However, investors are advised to research thoroughly before making any investment decisions in ITC Stock.
Disclaimer: This blog post is for informational purposes only and does not constitute any investment advice or recommendation. Investors are advised to do their own research and analysis before making any investment decisions.
FAQs on ITC Share Price Target 2024, 2025, 2026, 2027, 2030
What is the ITC Share Price Target 2024?
In 2024, the projected price target for ITC shares is between ₹563 as the minimum and ₹625 as the maximum, with an average estimate of ₹594.
What is the ITC Share Price Target 2025?
In 2025, the ITC share’s expected price target spans from ₹703 at the lower end to ₹781 at the higher end, with an average forecasted price of ₹742.
What is the ITC Share Price Target 2026?
For 2026, the projected share price target for ITC is estimated to vary, with the lowest prediction at ₹879 and the highest at ₹977. The mean share price target for ITC in that year is anticipated to be around ₹928.
What is the ITC Share Price Target 2030?
In 2030, the ITC share price is projected to fluctuate between ₹2146 as the lowest estimate and ₹2384 as the highest. The anticipated average price for that year stands at ₹2265.
