A well-known Indian corporation, ITC Limited has a substantial presence in industries like packaging, paperboards, hotels, and fast-moving consumer goods (FMCG). The current price of ITC’s stock as of December 27, 2024, is ₹478.
Recent Stock Performance
Over the past week, ITC share price has exhibited slight fluctuations:
- December 26, 2024: The stock closed at ₹476.85, marking a 0.30% decline.
- December 20, 2024: A 0.38% decrease to ₹464.60 was observed.
- December 23, 2024: The stock rose by 2.07% to ₹474.20.
With very slight daily variations, these movements point to a comparatively consistent performance.
Views of Analysts
Over the next 12 months, analysts have set a median price objective of ₹540 for ITC’s shares, indicating a possible 13% increase from the present price. A high estimate of ₹588 and a low estimate of ₹420 are included in the consensus.
Investment Considerations
When evaluating ITC as an investment option, consider the following factors:
- Financial Health: ITC boasts a robust Return on Equity (ROE) of 27.29% and a Price-to-Earnings (P/E) ratio of 29.04, indicating strong profitability.
- Dividend Yield: The company offers a dividend yield of 2.88%, appealing to income-focused investors.
- Market Position: As the largest cigarette manufacturer in India, ITC holds a dominant position in the tobacco industry.
- Diversification: ITC’s expansion into FMCG products, hotels, and packaging has diversified its revenue streams, potentially reducing dependence on the tobacco segment.
Risks to Consider
- Regulatory Environment: The tobacco industry faces stringent regulations and potential policy changes that could impact profitability.
- Market Volatility: Stock prices are subject to market fluctuations, and past performance does not guarantee future results.
How to Invest in ITC
To purchase ITC shares, take the following actions:
- Create an account with Demat: To hold shares electronically, you must have an Open Demat account. Select a trustworthy brokerage company that provides services for opening an account online.
- Full KYC Procedure: Provide the required documentation, including a passport-sized photo and proof of identity and address.
- Put Money Into Your Account: Fund your trading account with the specified investment amount.
- Make a Purchase: To place a buy order for ITC shares, use the trading platform of the brokerage.
- Keep an eye on your investment: Review your portfolio regularly and keep up with market developments.
Conclusion
ITC Limited presents a compelling investment opportunity with its strong financials, market leadership, and diversified business model. However, it’s crucial to assess personal investment goals and risk tolerance before making investment decisions. Consulting with a financial advisor can provide personalized guidance tailored to individual circumstances.
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