Now ITC is on a rally and I am sure you are curious about ITC Share Price Target for 2023, 2024, 2025, and 2030. Today in this article we will evaluate the strengths and weaknesses of ITC Limited.
The share price of ITC has remained stable in the last five years and the stock has seen only downward movement.
In addition, we find out whether investing in this company is profitable or not. Also, ITC Share Price Target 2023, 2024, 2025, and 2030 are included in this article.
ITC Share Price Target 2023, 2024, 2025, 2030
The corporation was established on August 24th, 1910. Imperial Tobacco Company of India Limited was the company’s name when it was founded; in 1970, it changed its name to India Tobacco Company Limited.
Later in 1974, it changed its name to ITC Limited. ‘ITC’ is no longer an initial or abbreviation and is now referred to as ‘ITC Limited’ by this corporation.
The company’s headquarters are in Kolkata, West Bengal. Sanjiv Puri and Rajeev Tandon are the company’s current chairman, managing director, and chief financial officer, respectively.
ITC Share Price Target 2023
ITC Limited is a Large-cap company operating across multiple sectors. The market cap of the company is more than ₹4 lakh crore. The company’s stock has given over 40 percent returns in the last year.
Sector P/E is 45.04 and ITC P/E is 25.58. This indicates that the stock is still undervalued compared to its peers. ITC has changed its strategy in business divisions. The management will also explore growth opportunities through the M&A route and make higher investments to promote exports.
Despite the decline in the stock market in the year 2022, ITC’s stock is running away. We are bullish on ITC Share Price Target 2023.
| Year | ITC Share Price |
|---|---|
| 2023 | ₹365 to ₹373 |
ITC Share Price Target 2024
The tobacco industry accounts for almost all of the company’s earnings. Following Kovid, the tobacco market has made a solid comeback. In FY22, India accounted for 78% of ITC’s revenue, with exports accounting for the remaining 20%.
. The corporation is doing more business this way than through exports.
A significant portion of the CAPEX for hotels has already been used. ITC is currently working to enhance investments, hotel segment revenue, and profitability.
The company has made strong investments in the FMCG industry over the past 20 years with a focus on the future. This contains packaged foods, office supplies, toiletries, incense, and safety matches.
| Year | ITC Share Price |
|---|---|
| 2024 | ₹392 to ₹405 |
ITC Share Price Target 2025
The company is a quality company that is fundamentally strong. The company has an EBITDA margin of 34% which is impressive. ITC has a good management history. Long-term investment in this stock can be considered for good returns.
Now ITC is working very aggressively in the FMCG sector. Many of ITC’s products have already captured good market shares such as Aashirwad, Savlon, Sunfeast, Sunbean, and Yippee.
ITC is the leader in the organized domestic cigarette market with more than 80% market share. Its wide range of brands includes Insignia, India Kings, Classic, Gold Flake, American Club, etc.
| Year | ITC Share Price |
|---|---|
| 2025 | ₹430 to ₹452 |
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ITC Share Price Target 2026
We believe that the Board of ITC is aware of the demerger of ITC Limited based on interactions with the media. If the company is demerged, ITC shares will see value unlocking.
The ITC Infotech division is the most undervalued one. However, it has the greatest growth rate and has greatly enhanced its value. In FY 19–21, ITC Infotech’s revenue increased by 22% to Rs 2,454 crore, while its net profit more than tripled to Rs 451 crore. ITC Infotech Company has a lot of hope.
The company’s ongoing focus on revenue diversification may result in a significant rise in sales in the future.
| Year | ITC Share Price |
|---|---|
| 2026 | ₹475 to ₹510 |
ITC Share Price Target 2030
ITC, however, is a fundamentally very solid business. However, there are certain risks as well. So, before investing in ITC, keep all of these dangers in mind.
These dangers include an over-reliance on the cigarette industry and ESG issues. In addition to the risk, the corporation has made several wise decisions. Promote cutting-edge technology, new product introductions, and distribution growth.
We have high hopes for the company’s future, and we have set the following goals for ITC in 2030:
| Year | ITC Share Price |
|---|---|
| 2030 | ₹1050 to ₹1100 |
Top Companies of ITC
Aashirvaad, Sunfeast Yippee!, Bingo, Farmland, Sunrise John Players, Gold Flake, Classmate, Aim, and Superfine Printing are among its well-known brands. The business operates in South-East Asian, European, and North American nations. In India, ITC is headquartered in Kolkata.
Business Model of ITC Limited
ITC offers a variety of market categories. Cigarettes, FMCG, hotels, packaging, paperboard, specialized papers, information technology, and agribusiness are examples of business segments.
The business, which traditionally sells cigarettes, enjoys a monopoly. ITC is also the top FMCG marketer in the nation and the undisputed market leader in the paperboard and packaging sector in India.
Although ITC’s primary source of income is its cigarette segment, other industries like FMCG, agri-commodities, paper, and hotels have expanded through time as well.
Companies Strength
Financial Strength:
- Excellent Quick Ratio and Current Ratio.
- Free cash flow per share of 6.35
- The company is maintaining a healthy ROE of 24.39 % in the last 3 years.
- ITC has maintained a healthy ROCE of 30.86 % in the last 3 years.
- The company is a virtually debt-free company.
- The company has a healthy interest coverage ratio of 292.21.
- The company is maintaining an effective average operating margin of 33.90% over the last 5 years.
- An efficient cash conversion cycle of 12.45 days.
- The EPS of the company is continuously increasing.
- ITC has a strong degree of operating leverage, with average operating leverage of 13.13.
Other Strengths:
- ITC dominates the Indian cigarette segment.
- The diversified product portfolio of the company.
- Strong brand value.
Companies Weakness
Financial Weaknesses:
- ITC has shown poor profit growth of 5.11% in the last 3 years.
- The company has shown poor revenue growth of 3.84% in the last 3 years.
Other risks and hazards:
- If the government increases the tax on the cigarette business, then the illegal sale of the product may increase and the growth rate of the company may get affected.
- Many investors who emphasize strong ESG values avoid ITC. If ESG acceptance becomes more widespread, it could result in a further reduction in the company’s valuation.
- Bad capital allocation.
Shareholding pattern of ITC Ltd.
| Promoters | 0% |
| Public | 45.24% |
| FII | 11.99% |
| DII | 42.77% |
| Others | 0% |
Competitors of ITC Ltd.
- Marico Ltd
- Godfrey Phillips India Ltd
- HUL
- Nestle
- P&G
- L’oreal
- Coca-Cola
- Danone
- Dabur
- Colgate
- Godrej Consumer Products
- Tata Consumer
Competitors to ITC Hotels
- Oberoi Group of Hotels
- Taj Group of Hotels
- Leela Hotels
- Sarovar Group of Hotels
Competitors to ITC Cigarettes
- Vazir Sultan Tobacco Company
- Golden Tobacco Ltd
- Raghunath Tobacco Company Ltd
- Philip Morris International
- Godfrey Phillips India Ltd
ITC Share Price Target 2023, 2024, 2025, 2026, 2030
| ITC Target Price | |
| First Target (2023) | ₹365 |
| Second Target | ₹373 |
| First Target (2024) | ₹392 |
| Second Target | ₹405 |
| First Target (2025) | ₹430 |
| Second Target | ₹452 |
| First Target (2026) | ₹475 |
| Second Target | ₹510 |
| First Target (2030) | ₹1050 |
| Second Target | ₹1100 |
Disclaimer -In this article we have just evaluated the company. Also, we are not SEBI-registered advisors. We have not given any investment advice on this stock. This article is for educational purposes only and contains only personal opinions. Please do your own research or seek the advice of your financial advisor before making any investment.
FAQs
Is ITC a good buy?
The financial position of the company is strong. Along with this, the company is continuously increasing its sales and profits.
Is ITC a government company?
No, it is a private-public company.
What does ITC do?
ITC’s main business comes from cigarettes. ITC is also engaged in the hotel, IT, and agro-businesses.
Is ITC a debt-free company?
ITC is virtually a debt free company.
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