ITC Limited, one of India’s most diversified company, operates in multiple sectors, including FMCG, cigarettes, hotels, paperboards, packaging, and agribusiness. Investors closely watch ITC stock due to its stable growth and high dividend yield. In this article, we will analyze ITC’s stock performance, financials, growth prospects, and expert price target estimates for 2025.
ITC Stock Performance in Recent Years
Historical Price Trends
ITC’s stock has shown resilience in the past few years, supported by strong fundamentals and a diversified business model. Key highlights include:
- ITC reached a 52-week high of ₹498.94 in September 2024.
- The stock is currently trading around ₹401.00 (as of February 2025), reflecting a decline of nearly 19.63% from its peak.
- ITC has outperformed some of its competitors in the FMCG and tobacco sectors despite recent market volatility.
Financial Performance
Revenue and Profitability
- ITC reported a consolidated revenue of ₹68,504 crore in FY 2024, marking a steady YoY growth of 9.5%.
- The company’s net profit stood at ₹19,923 crore, showing a 13.2% increase compared to the previous year.
- Earnings per share (EPS) rose to ₹16.1, indicating strong profitability.
Dividend Yield and P/E Ratio
- ITC maintains an attractive dividend yield of 3.5%–4%, making it a favorite among income investors.
- The price-to-earnings (P/E) ratio is 24.91, which is reasonable compared to its industry peers.
Growth Prospects for ITC in 2025
Diversification and Expansion Strategies
- FMCG Business Growth: ITC has aggressively expanded its non-cigarette FMCG business, contributing over ₹20,000 crore in annual revenues. Key brands like Aashirvaad, Sunfeast, and Bingo! continue to drive market penetration.
- Hotel Business Recovery: Post-pandemic, ITC’s hotel segment has seen a revival, with occupancy rates and revenue per available room (RevPAR) improving.
- Agribusiness & Sustainability Initiatives: ITC’s commitment to sustainability, including its e-Choupal initiative, has strengthened its agribusiness segment, ensuring long-term growth.
Stock Buyback & Institutional Interest
- ITC’s management has indicated potential stock buybacks to enhance shareholder value.
- Foreign Institutional Investors (FIIs) hold a 15% stake, while Domestic Institutional Investors (DIIs) have increased their holdings in the past few quarters.
ITC Stock Price Target for 2025
Brokerage & Expert Predictions
- ICICI Securities: ₹450-₹470
- Motilal Oswal: ₹480-₹500
- HDFC Securities: ₹460-₹480
- Goldman Sachs: ₹500+ (bullish scenario)
Bullish & Bearish Scenarios
- Bullish Case (₹500+): If ITC maintains strong revenue growth and margin expansion, the stock could breach ₹500.
- Bearish Case (₹380-₹400): If market sentiment weakens or regulatory changes impact the cigarette business, ITC may struggle to rise significantly.
Conclusion: Should You Invest in ITC Stock in 2025?
ITC remains a strong long-term investment due to its diversified business model, consistent dividends, and growth in FMCG and agribusiness segments. With expert price targets averaging ₹450-₹500, investors looking for stable returns may find ITC an attractive option. However, monitoring regulatory developments and broader market trends is crucial before making investment decisions.
FAQs
1. Is ITC a good stock for long-term investment?
Yes, ITC has a strong financial position, steady growth, and high dividends, making it a solid long-term pick.
2. What factors could drive ITC’s stock price higher in 2025?
Expansion in FMCG, hotel business recovery, and strategic buybacks can push the stock higher.
3. What are the risks involved in investing in ITC?
Regulatory restrictions on the tobacco business and competition in the FMCG segment pose risks.
4. What is ITC’s projected EPS for 2025?
Analysts estimate ITC’s EPS to be around ₹17.5-₹18 for FY 2025.
5. Can ITC stock reach ₹500 in 2025?
If ITC sustains revenue growth and margin expansion, ₹500 is achievable in a bullish market scenario.
