itc share price target by 2025: ITC Share Price Target 2024, 2025, 2026, 2027, 2030 and Long Term

Competitors of ITC

ITC faces competition across its diverse segments from both domestic and global players. Some of its major competitors in various sectors include:

FMCG:

• Hindustan Unilever
• Procter & Gamble
• Nestle
• Godrej Consumer Products
• Dabur
• Marico
• Colgate-Palmolive
• L’Oreal
• And more.

Hotels:

• Taj Group
• Oberoi Group
• Leela Group
• Marriott International
• Hyatt Hotels
• And more.

Paperboards and Packaging:

• JK Paper
• West Coast Paper Mills
• Seshasayee Paper and Boards
• International Paper APPM
• And more.

Agri-Business:

• Adani Wilmar
• Ruchi Soya Industries
• Cargill India
• Olam International
• And more.

Information Technology:

• Infosys
• Tata Consultancy Services
• Wipro
• HCL Technologies
• And more.

Growth Opportunities for ITC

ITC has identified several growth opportunities across its diverse segments, which are poised to enhance its future performance. Here are some key growth avenues:

FMCG:

• ITC is expanding its FMCG product range and distribution channels to meet growing consumer demand.
• Introduction of new brands and products across food, personal care, and health categories.
• Investments in innovation and research and development (R&D) for unique offerings.
• Leveraging the e-choupal network to reach rural consumers and farmers.
• Setting a revenue goal of Rs 1 lakh crore by 2030 in the FMCG sector.

Hotels:

• ITC is diversifying its hotel brand portfolio.
• Addition of new properties in the luxury, business, and leisure sectors.
• Introduction of brands like Mementos and Storii catering to evolving customer preferences.
• Embracing ‘Responsible Luxury’ to underscore a commitment to sustainability.
• Anticipating strong growth post-pandemic in the hotel sector.

Paperboards and Packaging:

• ITC is strengthening its position in this sector by focusing on improving quality and efficiency.
• Investments in green technologies to reduce carbon footprint.
• Development of innovative solutions such as biodegradable materials and paper-based alternatives.
• Anticipating increased demand from sectors like FMCG, e-commerce, and pharmaceuticals.

Agri-Business:

• ITC aims to benefit farmers and society through its agribusiness initiatives.
• Sourcing commodities like wheat and rice using the e-choupal network.
• Providing services like crop advisory and weather forecasting to enhance crop quality.
• Implementing interventions like watershed development for environmental sustainability.
• Expecting growth due to rising demand for agri commodities both domestically and internationally.

Information Technology:

• ITC, through its subsidiary ITC Infotech, is expanding its IT services.
• Providing IT solutions to sectors such as banking and financial services.
• Continuously evolving its IT services to meet the dynamic needs of clients.

ITC Financial Performance Overview 

In the fiscal year 2022–23, ITC showcased robust financial resilience, navigating through the challenges presented by the pandemic and subsequent lockdowns. The company demonstrated impressive year-on-year growth, with a 17.6% increase in revenue, reaching Rs 58,493 crore. Additionally, the profit surged by 21.4%, reaching Rs 15,136 crore.

Maintaining a robust operating margin of 36.8% and a commendable return on capital employed at 29.5%, ITC has affirmed its financial stability and efficiency. Shareholders were duly rewarded with a dividend of Rs 10.75 per share, resulting in a noteworthy dividend yield of 4.7%.

Here’s a comprehensive breakdown of ITC’s segment-wise revenue and profit performance for the fiscal year 2022–23:

FMCG:

• Revenue: Rs 16,432 crore
• Revenue Growth: 19.2%
• Profit: Rs 2,341 crore
• Profit Growth: 25.6%
• Profit Margin: 14.3%

Hotels:

• Revenue: Rs 3,214 crore
• Revenue Growth: 32.1%
• Profit: Rs 621 crore
• Profit Growth: 47.3%
• Profit Margin: 19.3%

Paperboards and Packaging:

• Revenue: Rs 6,789 crore
• Revenue Growth: 14.7%
• Profit: Rs 1,432 crore
• Profit Growth: 18.9%
• Profit Margin: 21.1%

Agri-Business:

• Revenue: Rs 15,321 crore
• Revenue Growth: 15.4%
• Profit: Rs 1,281 crore
• Profit Growth: 16.7%
• Profit Margin: 8.4%

Information Technology:

• Revenue: Rs 2,987 crore
• Revenue Growth: 20.3%
• Profit: Rs 712 crore
• Profit Growth: 22.4%
• Profit Margin: 23.8%

Others:

• Revenue: Rs 13,750 crore
• Revenue Growth: 16.9%
• Profit: Rs 8,749 crore
• Profit Growth: 20.1%
• Profit Margin: 63.6%

Future Challenges and Risks for ITC Stock

The path to future growth and sustained performance for ITC is not without its challenges and potential risks. Here are some key considerations:

1. Regulatory and Tax Uncertainties:

• ITC operates in an environment heavily influenced by regulatory frameworks and tax policies.
• The cigarette business, a dominant segment, grapples with high excise duties, GST rates, and stringent restrictions on advertising and packaging.
• Taxes and levies introduce complexities affecting the profitability and competitive edge of the hotel business.
• The agribusiness segment is susceptible to fluctuations in commodity prices and trade policies, impacting both revenues and costs.

2. Competitive Pressures:

• Intense competition across various sectors poses challenges to ITC’s market standing and potential growth.
• In the FMCG sector, the company contends with both established and emerging competitors who offer comparable or superior products at competitive prices.
• The hotel business encounters stiff competition from domestic and international brands, providing diverse options for customers.
• The paperboard and packaging segment faces competition from producers with access to more economical resources.

3. Disruptive Technologies:

• ITC is exposed to the risks associated with technological disruptions that can reshape industry dynamics.
• The FMCG sector may witness challenges from e-commerce platforms, offering enhanced convenience and diverse product choices for customers.
• The hotel industry faces potential disruption from online travel platforms and alternative lodging providers, which may offer more cost-effective and superior experiences.
• Digital transformations and growing environmental concerns in the paperboard and packaging sectors could lead to reduced demand for traditional paper products.

Impact of ITC Demerger: New Opportunities

The impending ITC demerger stands as a highly anticipated milestone in the annals of India’s stock market, poised to reshape the corporate landscape. This strategic move will usher in the creation of two distinct entities: ITC Limited and ITC Hotels Limited.

1. Value Rise:
   • The bifurcation of ITC into separate entities, namely the FMCG business and the hotel business, heralds the assignment of individual valuation to each. The prevailing perception of ITC as primarily a cigarette company has suppressed its stock price. The demerger is expected to redefine this perception, potentially elevating the valuation of both entities. The FMCG segment, operating with fewer regulations and abundant growth prospects, may experience a surge. Simultaneously, the hotel business, known for its profitability, has a newfound opportunity to shine. Analysts posit that this strategic move could amplify ITC’s overall value by as much as 40%.
2. Share Changes:
   • Existing ITC shareholders will witness a transition as they receive new shares corresponding to the hotel business. The quantum of these shares will hinge on decisions made by the company’s leadership. Post-demerger, shareholders might opt to retain shares in one of the companies or make decisions based on individual goals. Noteworthy stakeholders like LIC, holding a substantial 16% of ITC shares, may recalibrate their portfolios in adherence to regulations and strategic objectives.
3.  New Leadership:
   • The demerger will instigate a paradigm shift, endowing each new entity with its distinct leadership and team. This transformation is poised to be advantageous, allowing each team to focus exclusively on their core competencies without the encumbrance of divergent business facets. Furthermore, this segregation promises transparency in reporting, offering stakeholders clearer insights into the performance of each independent company.
4. Working Together:
   • While the erstwhile ITC conglomerate enjoyed synergies from housing diverse businesses under one roof, the demerger might alter the dynamics of such collaborative benefits. However, the separated entities can explore alternative avenues for cooperation, be it through joint promotional endeavours or strategic partnerships. The newfound autonomy will empower each company to experiment with novel strategies and innovations independently.

Conclusion:

ITC stands as a multifaceted conglomerate, showcasing robust presence and growth prospects across diverse sectors such as FMCG, hotels, paperboard and packaging, agribusiness, and information technology.

Despite grappling with the challenges presented by the pandemic and associated lockdowns, ITC reported a commendable financial performance in the fiscal year 2022-23. Notably, the company has unveiled plans to demerge its hotel business into a distinct entity, slated for listing on stock exchanges by 2023.

This strategic demerger is anticipated to unlock inherent value within both entities, allowing the market to appraise them independently based on their unique businesses and growth trajectories.

The impending demerger bears significant implications for the companies involved, influencing aspects such as valuation, shareholding structures, governance, and synergies. For ITC stock, which has experienced a range-bound trading pattern in recent years, the demerger is poised to act as a positive catalyst.

Our comprehensive analysis, incorporating the latest available data, has culminated in the ITC Share Price Targets for 2024, 2025, 2026, 2027, and 2030. However, investors must conduct thorough research before making any investment decisions related to ITC Stock.

Disclaimer: This blog post serves purely informational purposes and does not constitute investment advice or recommendations. Investors are strongly encouraged to conduct their research and analysis before making any investment decisions, considering the inherent risks associated with stock market investments.

Frequently Asked Questions (FAQs):itc share price target by 2025

What will be the future share price of ITC in 2030?

The projected share price for ITC in 2030 is estimated to be in the range of ₹2146 to ₹2384, with an average target of ₹2265.

What is the share price of ITC in 2025?

Analysts anticipate the share price of ITC to range from ₹703 to ₹781 in 2025, with an average target of ₹742.

What is the price of ITC in 2024?

Projections for ITC’s share price in 2024 suggest a range between ₹563 and ₹625, with an average target of ₹594.

Is ITC a good investment for the long term?

The viability of ITC as a long-term investment depends on a thorough evaluation of its financial health, business strategies, and industry trends. Investors are advised to conduct comprehensive research before considering it for long-term investment.

Is ITC good for investment?

The suitability of ITC as an investment depends on individual financial goals and risk tolerance. It is essential to assess ITC’s current standing, growth prospects, and potential risks before making an investment decision.

What is the future of ITC?

The future of ITC is influenced by factors such as its demerger, business strategies, and industry dynamics. The upcoming demerger is anticipated to unlock value within the company, potentially impacting its future outlook.

What is the future of ITC stock?

The future of ITC stock is subject to various factors, including market trends, industry competition, and the success of its strategic initiatives. Investors should stay informed about company developments and market conditions.

Will ITC give a dividend in 2023?

In the fiscal year 2022–23, ITC rewarded its shareholders with a dividend of ₹10.75 per share, resulting in a dividend yield of 4.7%. Future dividends depend on the company’s financial performance and decisions by its management.

Is ITC giving bonus shares?

Information about bonus shares is not provided in the given text. Investors should refer to official company announcements and records for the latest information on bonus share issuances.

Can I claim ITC for the previous year in the next year?

Yes, you can claim ITC for the previous year in the next year.

Can ITC be claimed in the next year?

Yes, ITC can be claimed in the next year.

Who will claim ITC?

The entity or individual making the eligible purchases will claim ITC.

What is the maximum ITC claim?

The maximum ITC claim is subject to the applicable tax laws and regulations.

Is ITC refunded?

Yes, ITC is refunded under certain conditions.