About ITC Ltd (ITC)

ITC Limited is one of India’s foremost fast-moving consumer goods (FMCG) companies, boasting a robust presence across various sectors including cigarettes, hotels, paperboards and packaging, agri-business, and packaged foods and confectionery. Established in 1910 as the Imperial Tobacco Company of India Limited, ITC has evolved into a diversified conglomerate with a market capitalization exceeding $50 billion. The company, with its headquarters in Kolkata, employs over 25,000 individuals nationwide.

ITC’s core business segments include FMCG, hotels, paperboards & packaging, and agri-business. The FMCG segment, which encompasses cigarettes, branded packaged foods, personal care products, and other consumer goods, contributes to over 80% of the company’s revenue.

The company’s cigarette brands, such as Gold Flake, Navy Cut, Insignia, Classic, Silk Cut, and American Club, command more than 75% of India’s cigarette market share. In the food sector, ITC presents a variety of staples, snacks, meals, dairy products, confectionery, and beverages under well-known brands like Aashirvaad, Sunfeast, Bingo!, YiPPee!, Candyman, B Natural, ITC Master Chef, and Farmlite, among others.

ITC Hotels ranks as one of the premier luxury hotel chains in India, with a portfolio of over 100 hotels under the ITC Hotels, Welcomhotel, Fortune Hotels, and WelcomHeritage brands. Additionally, the company holds a significant stake in the paperboards, paper, and packaging industry, providing a range of fine papers, boards, and specialty papers.

ITC Share Historical Performance

If you look at ITC share price over the last 10 years, then you can notice that stock has increased from around ₹209 in January 2014 to ₹433 in November 2023, which is growth of approximately 107%. But, during this period, the growth trajectory of ITC share has not been uniform. So, here are some important events that influenced ITC’s share price over the last decade.

• In 2016, the government’s demonetization of ₹500 and ₹1000 notes adversely affected consumer spending. But, sales in FMCG sector, which contributes most to ITC’s revenue, remained strong, leading to increase in stock from ₹243 in October 2016 to ₹257 in January 2017.
• The implementation of GST in 2017 introduced some disruptions and uncertainties within the FMCG sector. During this period, ITC’s stock price saw a decrease from ₹335 in June 2017 to ₹265 in October 2017.
• The COVID-19 outbreak in 2020 had a severe impact on the sales and revenue of ITC’s cigarette, hotel, and packaged foods businesses. The stock price dropped from ₹218 in February 2020 to ₹177 in April 2020.
• In 2021, ITC broadened its FMCG portfolio by introducing new products in categories such as dairy, chocolates, and coffee. The stock experienced a consistent rise, reaching ₹218 by December 2021.
• In 2022, ITC reported robust quarterly results, bolstered by strong growth in the FMCG business, which led to renewed investor interest and pushed the stock price to ₹350.

Currently, the stock price stands at ₹433, which is an increase of 23% from 2022 stock price.

ITC Share Price History

Below is the table of ITC’s price history from 2013 to 2023, showing performance of the stock in the last 10 years.

ITC Share Returns in the Last 10 Years

Over the past decade, ITC Ltd has delivered a total shareholder return (TSR) of approximately 125%. TSR encompasses the total returns from both share price appreciation and dividends paid.

An investment of ₹100 in ITC shares at the beginning of 2014 would have increased to about ₹207 by the end of 2023. This equates to a 10-year compound annual growth rate (CAGR) of 10.5%. During this period, ITC has consistently distributed dividends, with the dividend per share rising from ₹6.00 in 2014 to ₹6.75 in 2023. The reinvestment of dividends would have further enhanced the overall returns for shareholders.

ITC Share Returns in the Last 20 Years

If you look at a broader investment horizon of 20 years, from 2004 to 2023, an investment of ₹100 in ITC stock in 2004 would have appreciated to over ₹1,904 by 2023, which is an impressive 20-year CAGR of 24.51%. Now, the key factors that contributed to this returns were ITC’s consistent dividend payments, its strategic diversification into new business areas, and the sustained growth of its FMCG segment.

Here’s how ITC shares delivered returns over various time frames.

This analysis shows that ITC has been a significant wealth generator for long-term investors.

ITC Dividend History

ITC boasts an outstanding track record of consistently rewarding its shareholders with dividends each year. The company’s dividend history table clearly shows regular payments for the last 20 years.

• Over the last decade, ITC has issued bonus dividends twice – a 2:1 bonus in 2016 and a 1.65:1 bonus in 2011.
• The dividend payout ratio has consistently been high, typically ranging between 100-300%. For the fiscal year 2022, the payout ratio was at 184%.
• ITC announced an interim dividend of ₹5 per share in February 2022, followed by a final dividend of ₹6.25 per share in May 2022.
• The final dividend yield for FY2023 stood at 3.45%.

ITC Stock Split History

Over the past two decades, ITC has conducted three stock splits. Below is the detailed breakdown:

• In September 2005, ITC carried out a 10:1 stock split, where it issued 10 shares for every 1 share held by shareholders. This action increased the total number of outstanding shares tenfold.
• Then, in August 2010, the company declared a 1:2 bonus share issue, granting one additional share for every two shares owned by the shareholders, effectively increasing the share count by 50%.
• The most recent bonus issue was in July 2016, when ITC again declared a 1:2 bonus issue, which once more doubled the total number of shares outstanding.

ITC Ltd (ITC) Share Price Target

According to short-term forecast, the stock price ITC can reach around ₹430 in 2023, and ₹500 in 2025. And, according to long-term forecast, the stock price can hit around ₹800 in 2028, and ₹900 in 2030. Let’s delve into these share price targets in detail from 2023 to 2050.

ITC Share Price Target 2023

For 2023, the estimated share price for ITC is projected to range between Rs 420 and Rs 438. Well, This optimistic forecast can be seen due to company’s robust performance in its FMCG segment and strategic expansion in the hospitality sector.

ITC Share Price Target 2024

Moving into 2024, the share price target for ITC can rise to ₹483.00 – ₹503.70. This increase is likely to be fueled by a rebound in the hotel sector and consistent performance in the cigarettes and FMCG segments. An expanded distribution network in tier 2 and 3 markets should also contribute to volume growth.

ITC Share Price Target 2025

By 2025, the share price could advance to the Rs 555 to Rs 578 bracket. We think that this forecast can be seen if ITC diversify into new FMCG categories such as dairy and confectionery. Also, increased agricultural income may bolster consumer spending, further aiding growth.

ITC Share Price Target 2026

The share price for 2026 is estimated at Rs 638 to Rs 665. During this period, ITC will fully recover from post-pandemic restrictions on hotel business. Also, ITC’s established brand equity will also play a substantial role in this.

TC Share Price Target 2027

In 2027, ITC’s share price is forecasted to reach between ₹734.58 and ₹765.41. Here, the company’s strategic initiatives to boost its non-tobacco portfolio and the anticipated growth in the FMCG sector are quite important to this forecast.

ITC Share Price Target 2030

By 2030, ITC’s share price is projected to range from ₹899.89 to ₹937.78. The long-term growth is expected to be fueled by the company’s consistent performance, its ability to adapt to market trends, and the expansion of its consumer goods portfolio.

ITC Share Price Target 2035

Looking further ahead to 2035, ITC’s share price is forecasted to reach ₹1,119.58 to ₹1,168.43. Here, We could see ITC becoming a leading player in the global FMCG sector. Also, we could see some contributions from its non-tobacco businesses and a stronger international presence,

ITC Share Price Target 2040

By 2040, the share price target for ITC is estimated to be between ₹1,362.99 and ₹1,421.95. The company’s long-term vision and sustained investments in innovation and sustainability are expected to be the key drivers of this impressive growth.

ITC Share Price Target 2050

In 2050, ITC’s share price is projected to be in the range of ₹1,641.02 to ₹1,713.70. The company’s enduring commitment to diversification, along with its potential to lead in sustainable practices, positions it well to capitalize on future market opportunities and deliver substantial returns to shareholders.

ITC Share FAQs

What is the forecast for ITC’s share price in 2025?

Based on market forecasts, ITC’s share price in 2025 is likely to range between Rs 555 and Rs 578. This anticipated growth is expected to be driven by traction in new FMCG categories and a steady demand for cigarettes.

Is ITC a good long-term stock to buy now?

Yes, ITC remains a solid buy for long-term investors. According to 11 Wall Street analysts, 6 recommend a “buy” rating, while 4 suggest a “hold.” Therefore, the average analyst rating is a “buy.” Moreover, the long-term growth outlook remains positive, with share price projections for ITC potentially reaching over ₹800 by 2028.

What is the target price for ITC shares in 2030?

The target price for ITC shares in 2030 is estimated to be between Rs 899 and Rs 937. This is contingent upon the company’s successful diversification into FMCG and other sectors, which are expected to yield these results.

Should I buy ITC shares now?

If you are planning to stay invested for the long term, then the shares are definitely a buy. However, for short-term investors, it might not be the right time, given the current share price fluctuations.

What is ITC’s future revenue growth outlook?

ITC is expected to deliver an 8-10% revenue growth over the next five years, driven by its cigarette business, a rebound in hotels, and new FMCG products. Expanding distribution and market share gains are anticipated to support this growth.

Where should I buy ITC Shares?

You can buy ITC shares through a Demat account from leading stockbrokers in India like Upstox, Zerodha, or Paytm Money. The stock is listed on NSE and BSE under the ticker symbol ‘ITC’.