ITC Share Price Target 2022 Analysis

ITC share price analysis

ITC share price is 212 Rs and the range from December 2020 to July 2021 is 196 and 240. Firstly, most people recognize ITC for hotels and cigarettes. Secondly, most people are right because more than 50% of the revenue is contributed by these two sectors. But ITC has a soft power among children also ITC with the help of its team of creatives is focusing on quality stationery for school-going children. Classmate textbooks and copies are favourite among the children.

ITC Share price

ITC share price does not reflect its underlying assets. Because if anyone looks at its FMCG portfolio. The entire portfolio in itself is an industry. ITC is also a debt-free company of Nifty 50

  1. Cigarettes
  2. Foods
  3. Personal Care
  4. Education and Stationary
  5. Lifestyle
  6. Agarbattis and Safety matches

If there will be no lockdown in the market due to the new covid variant, then the ITC Share price will take support close to 280 Rs. The best thing for the management of ITC is to do a buyback of its share so that the supply is reduced in the market boosting the demand for share. Currently, the EPS – (Earnings Per Share) for ITC is in the range of 8-15 depending on the market situation.

ITC segment wise

When will ITC Share price breakout?

Firstly one must understand the ITC is in a sideways zone. The sideways zone is a zone of uncertainty. The share price is consolidating in the range of 200-240 Rs. Secondly, ITC is not a small company it has close to 1300 Cr shares trading in the market. The government of India is planning to sell shares of ITC and the news is out.

There are certain claims, allegations and critical viewpoints that have been made by Manu Rishi Guptha who is a shareholder of ITC in his personal blogs. Post titled as – “Magic Illusion or just Trickery”

As reported on Money control website ITC slaps a 100 Cr defamation lawsuit against Manu Rishi Guptha

Newsflow is keeping the stock price of ITC in a state of fluctuation. Let’s keep our fingers crossed and pray for the breakout.

ITC share price
Smoking Kills ITC Share Price

ITC has a very strong demand in rural as well as urban areas. The client base includes doctors, lawyers, farmers, army men, fishermen etc. In short, even though smoking causes cancer but people are taking their chances. ITC has both premia as well as a luxury chain of hotels. ITC is a family man with no boundations.

Impact of Government of India selling ITC

Firstly, such a huge supply in the market 7.93 per cent stake in ITC can result in the downward spiralling of the share price. Here are a few things we should stay cautious about.

  1. Government of India is in need of money – resulting in huge supply of the shares
  2. Markets are saturated resulting in lower demand
  3. Resultant either Industry, DII or FII should show interest in collecting shares for long term otherwise the prices will tumble.
  4. Such a huge supply with lack of demand can result in sharp decline ITC share price even though the intrinsic value is huge. For instance, HUL in the same FMCG sector command a premium in terms of valuation.
  5. The sale must be due to Government policies and the govt might want to keep a distance from sin products companies.
Jagdish Bhagat ITC
Jagdish Bhagat ITC

How to buy shares of ITC?

The only way to buy security in India is by using a Demat account. The Demat account is usually opened by a trading member, the trading member is known as a depository participant or commonly known as the stockbroker or member of the exchange. We support the following brokers or members. ITC share prices are going to rise as per various brokerage reports. You can check the PDFs on Trendlyne.

  1. Zerodha
  2. Upstox
  3. Angel Broking
ITC share price targets
ITC Share Price Brokerage Targets

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