One of the top commercial giants in India, ITC Ltd., operates in a variety of industries, including fast-moving consumer goods (FMCG), hotels, paperboards and specialty papers, packaging, agri-business, and information technology. ITC Ltd. is one of the biggest corporations in India, with a market valuation of more than INR 531670 Crore as of May 2023, and its shares are widely owned by investors. ITC recently announced their Quarterly results on May 18th, 2023.
The company has undergone major changes in recent years to improve its portfolio and boost its market position. The COVID-19 epidemic has presented obstacles, but ITC has been able to deliver consistent financial success and show its resilience in the face of them.
ITC Mar ’23 Quarterly Earning Result Explained
ITC Ltd. said on May 18, 2023, that its consolidated net profit for the fourth quarter of the fiscal year that ended in March (Q4FY23) increased by 22.7% year over year to 5,225.02 crore. At the same time last year, the cigarette manufacturer declared a profit of Rs. 4259.68 crore.
In comparison to Q4FY22, the consolidated net profit for the quarter (Q4FY23) that was attributable to the parent’s shareholders increased to 5,175.48 billion. The consolidated revenue from operations for Q4FY23 decreased 7.3% year over year to 19,058.29 crore from Q4FY22’s 17,754.02 crore.
From 19,020.65 crore, the revenue marginally increased sequentially. The company’s consolidated total income for Q4FY23 increased from Q4FY22’s Q4FY18,252.64 crore to Q4FY23’s Q4FY19,667.94 crore. Additionally, the overall costs increased from 12,632.29 crore to 12,907.84 crore year over year.
The firm said that its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) margin for the fourth quarter of fiscal year 23 increased by 430 basis points to 37.9% from 33.6% on a year-over-year (YoY) basis. EBITDA for the firm increased by 18.9% YoY to 6,209 crore in the fourth quarter of FY23 from 5,224 crore in the same period the year before.
Investors are closely monitoring ITC’s share price performance and its financial results as the global economy continues to revive and India’s economic growth prospects remain favorable.
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ITC LTD IN RECENT NEWS
- ITC Ltd. disclosed on Friday that it has purchased 2,443 equity shares of Sproutlife Foods Private Limited (Sproutlife) at a price of Rs. 10 apiece. In a statement with the stock markets, Indian Tobacco Company (ITC) stated that on May 4, it purchased 2,443 equity shares and 7,215 compulsorily convertible preference shares. ITC’s stock hit All-Time High at 431.9 after the announcement. Increases stake to 39.42%
- ITC recently became the 11th Indian company to cross the 5 Trillion INR market value.
- The National Company Law Appellate Tribunal (NCLAT) has overturned the Competition Commission of India’s (CCI) fine against multinational conglomerate ITC for failing to disclose the acquisition of Johnson & Johnson’s Savlon and Shower to Shower trademarks in 2017.
- ITC’s shares fall by more than 2.5% today when the company released its results.
- On Wednesday, the Supreme Court overturned an NCDRC decision that had upheld its earlier judgement of 2 crores in damages to an aspiring model for a poor haircut she received at the ITC Maurya hotel (ITC Limited vs. Aashna Roy).
ITC SHARE PRICE TARGET 2023
|ITC LTD SHARE PRICE TARGET 2023||Maximum Price||Minimum Price|
2023 seems to be a very profitable year for ITC share holders. The company recently hit its All Time High at 443.9 in May 2023. The trend continued upwards with each passing month, culminating in December 2023 with a maximum share price target of Rs 629.92. The minimum share price for the year was recorded in May at Rs 327 on 4th January 2023, but the share prices picked up and remained stable for the rest of the year. The share price target for ITC for the remaining 2023 could range from Rs 357.55 to Rs 629.92, depending on the prevailing market conditions and the company’s performance.
ITC LTD SHARE PRICE TARGET 2024
|ITC LTD SHARE PRICE TARGET 2024||Maximum Price||Minimum Price|
In 2024, the ITC share price target suggests that the share prices could potentially continue to rise, with a high of Rs. 881.92 in December. However, there could also be fluctuations in the share prices, with a low of Rs 457.02 in May 2024.
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ITC LTD SHARE PRICE TARGET 2025
|ITC LTD SHARE PRICE TARGET 2025||Maximum Price||Minimum Price|
The ITC share price target for 2025 suggest that ITC could potentially reach a high of Rs 1,069.78 in December 2025 with a low of Rs 620.79 in May 2025. ITC could cross Rs. 1000 for the first time in November 2025.
ITC LTD SHARE PRICE TARGET 2026 TO 2030
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The projected share price targets for ITC LTD from 2026 to 2030 seem to indicate a steady increase over the years. The maximum price target for 2026 is ₹748.85, while the minimum price target is ₹524.19. In 2027, the maximum price target is ₹636.52 and the minimum price target is ₹445.57. The maximum price target for 2028 is significantly higher at ₹1,145.74, with a minimum price target of ₹802.02. In 2029, the maximum price target jumps to a much higher ₹2,353.53, with a minimum price target of ₹1,647.47. Finally, in 2030, the maximum price target is ₹2,620.97 and the minimum price target is ₹1,834.68.
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FINANCIAL STRENGTH OF ITC LTD (2018 TO 2022)
|ANNUAL||FY 2022||FY 2021||FY 2020||FY 2019||FY 2018|
|Total Revenue Growth (%)||20.42||-0.19||2.92||11.58||1.67|
|Total Expenses Growth (%)||23.03||6.65||1.45||10.94||-0.79|
|Profit after Tax (PAT)||15,242.66||13,161.19||15,306.23||12,592.33||11,271.20|
|PAT Growth (%)||15.82||-14.01||21.55||11.72||9.54|
|Operating Profit Margin (%)||34.22||36.51||40.91||39.67||39.30|
|Net Profit Margin (%)||25.12||26.71||30.98||26.04||25.94|
|Basic EPS (₹)||12.37||10.70||12.47||10.30||9.26|
The financial bank statement of ITC LTD for the last five years shows a positive trend in terms of revenue growth. The total revenue of the company in FY 2022 increased by 20.42% compared to the previous year. The company’s expenses also grew by 23.03%, mainly due to increased expenditure on operating activities. However, despite the increase in expenses, the company was able to generate a profit after tax (PAT) of ₹15,242.66 crores in FY 2022, which represents a growth rate of 15.82%.
The operating profit margin of the company stood at 34.22%, while the net profit margin was 25.12%. This indicates that the company has been able to maintain a healthy level of profitability. In terms of basic earnings per share, the company reported a figure of ₹14.65 in May 2023, which is an improvement from the previous year. Showing a similar pattern, the Price-to-Earning ratio and Price-to-Book ratio raised to 28.65 and 8.48 respectively. Overall, ITC LTD has shown consistent growth in its financial performance over the last five years, with a significant increase in revenue and PAT.
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Why is ITC Share Price Going Up in 2023?
ITC shares are going up in 2023 and here is why:
- Strong earnings growth: ITC has been consistently reporting strong earnings growth in recent quarters. In the first quarter of 2023, the company’s net profit grew by 22.7%% year-on-year.
- Positive outlook: Analysts like Sharekhan, Nomura, JM Financial, ICICI Direct and Phillip Capital are positive about ITC’s outlook for the future. They expect the company to continue to grow its earnings in the coming quarters.
- Dividend: Another important reason, according to me, for the share price to go up is ITC being a dividend-paying company. In 2023, the company paid a dividend of Rs 2.75 per share. This is attractive to investors who are looking for income from their investments.
- Repositioning: ITC is in the process of repositioning itself as a consumer goods company. The company is investing in new businesses, such as FMCG and hotels, and it is exiting non-core businesses, such as cigarettes. This repositioning is expected to lead to higher growth and profitability in the future.
- No major setbacks from Government: In the budget, there was nothing negative about cigarettes, GST remains unchanged.
- Breakout: The most important reason from the technical analysis point of view is ITC has seen a breakout after a long period of trading within a range. And since the breakout, there is no stopping ITC.
Price Target by Experts
ITC price target by Sharekhan
Recently, Sharekhan raised its price target for ITC to Rs.485
ITC price target by Nomura
Nomura has recently insisted buyers to invest in ITC with an expected price of Rs 485.
ITC price target by JM Financial
JM Financial suggests investors to buy ITC with a predicted price of Rs 440.
ITC price target by ICICI Direct
ICICI Direct has given a buy rating to ITC with a price projection of Rs 450.
ITC price target by Phillip Capital
Brokerage firm Phillip Capital is positive with ITC, suggests price target of Rs. 475
What is the ITC Share Price Target 2025?
The maximum share price target of ITC LTD for 2025 is ₹1,069.78
What is the ITC share price target for 2030
The maximum share price target of ITC LTD share price target in 2030 is Rs. 2620.97
Can ITC reach 500INR?
ITC has been having its dream run. According to our price prediction, ITC could reach 500INR by August 2023
CONCLUSION: ITC LTD SHARE PRICE TARGET
ITC LTD has demonstrated continuous growth in terms of sales and profit over the past five years, with a revenue growth of 20.42% in FY 2022 and a profit after tax growth of 15.82% during the same time period. Over the years, the company has maintained a net profit margin above 25%, demonstrating its effectiveness in controlling its costs. However, the company’s PAT growth has fluctuated at times, as demonstrated in FY 2021, when there was a fall of -14.01%. Basic EPS for the company has likewise increased through time, reaching a value of 14.65 in FY 2023. Overall, ITC LTD shares can be viewed as a decent investment given the steady growth in revenue and profit. For anyone who wants to build a take position in a top FMCG company, ITC is a good bet.