Will ITC Share Hit Bullish Targets In 2023?

ITC Limited, one of India’s foremost multi-business conglomerates, was established over a century ago in 1910. Initially known as the Imperial Tobacco Company of India Limited, ITC began its journey as a single tobacco company. However, the company’s vision and adaptability have led to a remarkable transformation, evolving from a tobacco-centric business to a diversified business with a presence in various sectors. Today, ITC’s portfolio spans Fast Moving Consumer Goods (FMCG), hotels, paperboards & specialty papers, packaging, agri-business, and information technology. The shift from a tobacco company to a multi-business entity began in the 1970s when ITC recognized the potential of diversification. This led to a change in the company’s name to ITC Limited, reflecting its evolving identity and aspirations.

Since then, ITC has consistently expanded its business footprint, venturing into new sectors and creating a diverse array of successful businesses. ITC’s position as a leading player in the Indian market is not solely due to its diverse business ventures. It’s also about the company’s commitment to innovation, quality, and sustainability. ITC’s approach to business is guided by its ‘Triple Bottom Line’ philosophy, which aims to build economic, environmental, and social capital for the nation. This commitment to sustainable and inclusive growth has positioned ITC as a leader in corporate sustainability, earning it a place in the Dow Jones Sustainability Indices for several consecutive years. As we dive deeper into our ITC share price prediction, we will explore its rich history, diverse business ventures, and its future share price points. 

ITC: A Quick Introduction

Headquartered in Kolkata, ITC Limited is a prominent Indian conglomerate with a diverse portfolio that spans various industries. These include Fast Moving Consumer Goods (FMCG), hotels, software, packaging, paperboards, specialty papers, and agribusiness. The company operates 13 distinct businesses within five segments, showcasing its broad reach and versatility.

The construction of ITC’s headquarters, ‘Virginia House,’ began in Kolkata in 1928. The company expanded its operations by acquiring Carreras Tobacco Company’s factory in 1935 and setting up a cigarette tissue-paper-making plant in 1946. A printing and packaging factory was established in Madras in 1949. In 1953, ITC further expanded by acquiring the manufacturing business of Tobacco Manufacturers (India) Limited and Printers (India) Limited’s lithographic printing business.

ITC’s products have a global footprint, being exported to 90 countries and available in six million retail outlets. This international presence underscores the company’s expansive scale and influence.

As of the fiscal year 2019-2020, ITC reported an annual turnover of US$10.74 billion and boasted a market capitalization of US$35 billion. In a significant milestone for the company, its market cap surpassed the ₹500,000 crore (US$63 billion) mark on 17th April 2023, a first in the company’s history.

ITC’s workforce is another testament to its size and reach. The company employs over 36,500 individuals across more than 60 locations throughout India, reflecting its commitment to creating jobs and contributing to the country’s economic growth.

ITC: Evolution 

ITC began its transformation in the 1970s. In 1975, it entered the hotel industry with the acquisition of a hotel in Chennai, marking the start of its ITC Hotels business. The company aimed to generate foreign exchange, create tourism infrastructure, and generate employment. Today, ITC Hotels has over 115 properties across India and is expanding internationally with a luxury hotel in Colombo, Sri Lanka.

In 1979, ITC ventured into the paperboard business, promoting ITC Bhadrachalam Paperboards Limited. This division has significantly contributed to the development of Sarapaka, an economically backward area in Andhra Pradesh.

ITC made its first international move in 1985 by setting up Surya Tobacco Co. in Nepal. In 2000, it spun off its IT business into a wholly-owned subsidiary, ITC Infotech India Limited. In 2001, ITC entered the food business, launching ‘Kitchens of India’ ready-to-eat dishes. Today, the Foods business has grown significantly with numerous distinctive brands.

In 2002, ITC started supporting the small and cottage sector by marketing safety matches and incense sticks. In 2005, it entered the personal care business, and in 2010, it expanded its tobacco portfolio by launching its hand-rolled cigar, Armenteros.

Yogesh Chandra Deveshwar, the late Chairman of ITC, was a highly decorated leader, receiving numerous awards and recognitions. These included the Padma Bhushan from the Government of India (2005-09), a prestigious recognition from the Boston Consulting Group, and being named the seventh-best-performing CEO globally by the Harvard Business Review.

In 2012, ITC Limited welcomed its first female director, Meera Shankar. Shankar, who served as the Indian ambassador to the USA from 2009 to 2011, joined ITC’s board as an additional non-executive director, marking a significant milestone in the company’s history.

ITC Share: Price History

ITC has a rich history that is reflected in its share price movements over the years. The company’s shares were first listed in the early 20th century, and since then, they have experienced various periods of growth, consolidation, and volatility, mirroring the company’s own journey and the broader economic environment.

ITC shares started trading in 1999, with a price of ₹16. The price continued to consolidate for the next few years, and in 2005, it surpassed the ₹30 mark. Since then, the ITC share price went on a steady increase, and it touched the ₹100 level in 2010. The price then continued to surge, and in July 2013, the ITC share price was at ₹228. The company’s shares continued to perform well, reaching ₹235 in October 2013. However, the following year saw a significant drop in the share price, with it falling to ₹215 by February 2014. Despite this setback, ITC’s shares rebounded, and by October 2014, the share price had risen to ₹250.

The upward trend failed to continue into the next year, with the share price falling heavily. The share price dropped below the crucial ₹210 level in early 2015 and continued to hover in bearish territory for the next few months. However, the rest of the year and 2016 were marked by some volatility, with the share price falling below ₹200 and then rebounding by 2016’s end. 

Between 2017 and 2020, ITC share price witnessed a consolidation near ₹300 and then a heavy downfall in late 2019. The share value declined below ₹250, and by 2019’s end, holders started liquidating. ITC share fell below ₹200 and ₹150 in 2020 due to covid pandemic, and the overall market was in a bearish region. 

However, bulls triggered a strong rebound since then, and ITC share price never turned back as its price skyrocketed and crossed multiple resistance lines. ITC’s share price is currently making an all-time high as ITC’s share price experienced a 3 percent surge, reaching a new 52-week high of ₹493.40 during intraday trading on BSE. This increase sent the market capitalization of the stock beyond the ₹6 lakh crore mark. The stock began the day at ₹479.05, up from the previous close of ₹478.85, and rose to its 52-week peak of ₹493.40, marking a significant upturn.

Market analysts predict a further ascent in ITC’s stock value. Gaurav Bissa, VP of InCred Equities, highlighted that ITC is demonstrating a robust continuation pattern. This pattern is characterized by a brief consolidation phase on daily charts, followed by a breakout that drives prices higher, which is then succeeded by another consolidation. This trend suggests a potential for further growth in the stock’s value.

ITC’s stock has recently experienced a new consolidation breakout, but it is nearing an ascending wedge barrier set at ₹500 levels. Bissa suggests that investors could take advantage of any dip towards the ₹470 level to add the stock to their portfolio, aiming for a short-term trading target of ₹510. If the stock closes above ₹510, it could trigger a wedge breakout, potentially driving the stock price towards ₹550 levels, according to Bissa.

ITC Share Price Prediction: Technical Analysis

Recently, the ITC share price experienced a solid bullish trend, which has brought more buying pressure to the market. The price has been on a steady recovery trend since January, and after breaking above ₹259, ITC shares sparked an intense bullish rally. The market was previously heavily influenced due to poor performance; however, ITC showed a strong recovery, as seen on the daily price chart, and maintained its price stability. Despite facing critical support levels, ITC share has managed to display an uptrend and is well now above the bearish territory. A thorough technical analysis of ITC’s share price reveals bullish indicators, which may soon send the price to new highs. Investors should exercise caution as the short-term growth strategy for ITC appears volatile. The current surge may not be sustainable as bears may soon make a comeback. 

According to TradingView, the ITC price is currently trading at ₹492.15, reflecting an increase of over 2.7% in the last 24 hours. Our technical evaluation of ITC’s price indicates that the bullish momentum may soon fade as bears are trying to make a comeback to prevent the price from surging above ₹500. Examining the daily price chart, ITC’s share price has found support near the ₹370 level, from which the price gained bullish momentum and broke above multiple Fib channels. As the ITC price’s bearish levels trade just above the EMA20 trend line, bulls may attempt to open long positions, pushing the price to higher levels above ₹500. The Balance of Power (BoP) indicator is currently trading in a positive region zone at 0.7, hinting at an upward correction ahead. 

To thoroughly analyze the price of ITC shares, it is crucial to take a look at the RSI-14 indicator. The RSI indicator recently experienced a solid surge as ITC’s price reached its new high. The trend line is heading toward the overbought region as it currently trades at level 76, hinting that a downward correction is on the horizon, and sellers will try to push the below. It is anticipated that ITC’s price will soon attempt to break below its 23.6% Fibonacci level to achieve its short-term bearish goals. If bears fail to plunge below this Fibonacci region, an uptrend above ₹500 might be on the horizon. 

As the SMA-14 continues its upward swing by trading above 64-level, it trades slightly below the RSI line, potentially holding promises of the stock’s upward movement on the price chart. If ITC shares surge, it can pave the way to resistance at ₹500. A breakout above will drive the share price toward the upper limit of the Bollinger band at ₹512.

Conversely, if ITC fails to hold above the critical support level of ₹464, a sudden collapse may occur, resulting in further price declines and causing the ITC share to trade near the Bollinger band’s lower limit of ₹421. If the price fails to continue a trade above, it may trigger a more significant bearish downtrend to ₹370. 

ITC Share Price Prediction By Blockchain Reporter 

ITC Share Price Prediction 2023

Starting the forecast period in 2023, ITC’s shares are expected to see a significant amount of activity. The average price for the year is predicted to be around ₹520. However, market volatility could see the price drop to a minimum of ₹450 or rise to a maximum of ₹610. These fluctuations will be influenced by a variety of factors, including overall market conditions, ITC’s financial performance, and broader economic trends.

ITC Share Price Prediction 2024

As we step into 2024, ITC’s share price is projected to maintain its upward trajectory. The average price for the year is predicted to hover around ₹620. The minimum price is expected to touch ₹550, while the maximum price could escalate to ₹710. These predictions are based on the assumption of a steady growth rate and should be considered in conjunction with market trends and ITC’s financial performance.

ITC Share Price Prediction 2025

By 2025, the ongoing growth and expansion of ITC’s diverse business ventures are likely to further propel the share price. The average price is expected to reach ₹720, with a minimum price of ₹650 and a potential peak at ₹810.

ITC Share Price Prediction 2026

In 2026, ITC’s share price is predicted to continue its upward trend. The average price for the year could be around ₹820, with the price potentially dropping to a minimum of ₹750 or rising to a maximum of ₹910.

ITC Share Price Prediction 2027

Moving into 2027, the average price of ITC shares is expected to reach ₹920. The minimum price could potentially hit ₹850, while the maximum price could climb to ₹1010.

ITC Share Price Prediction 2028

By 2028, the average price for ITC shares is predicted to be ₹1020. The minimum price could reach ₹950, while the maximum price could hit ₹1110.

ITC Share Price Prediction 2029

In 2029, the average price for ITC shares could potentially reach ₹1120. The minimum price is expected to be ₹1050, while the maximum price could climb to ₹1210.

ITC Share Price Prediction 2030

By 2030, the average price for ITC shares is predicted to hit ₹1220. The minimum price could potentially reach ₹1150, while the maximum price could soar to ₹1310.

ITC Stock Price Forecast: Industry Experts 

Jefferies, a worldwide brokerage firm, predicts a surge in the stock value of ITC up to Rs 520. This projection is based on the valuation of ITC’s various business sectors: the cigarette business at 27 times the earnings of March 2025, the new FMCG at 5 times the sales of March 2025, the agriculture and paperboard businesses at 15 times the EPS of March 2025, and the hotel sector at 1 time the invested capital of March 2025.

However, for the June quarter, ITC is anticipated to experience a 6% decrease in revenue due to a slump in the agribusiness sector, which is attributed to a high base.

Jigar S. Patel, who serves as the Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, noted that the stock has maintained a strong and consistent uptrend over the past few years, consistently trading above all vital exponential moving averages.

Patel highlighted that the stock has recently broken out of its previous 11-day trading range of ₹465-480, with the daily Relative Strength Index (RSI) supporting its upward movement. He suggested that any drop to ₹465 could be an opportunity to add new long positions. Patel anticipates that the stock could reach around ₹525, recommending a stop loss at ₹460 based on daily closing prices.

Is ITC Share A Good Investment? Here’s The Best Entry Point 

ITC Limited, with its robust asset base and consistent earnings, stands as a beacon in the diversified Indian business landscape. The company’s positive free cash flow showcases its financial health, reflecting its ability to generate surplus cash after accounting for operating expenses and capital expenditures.