Case study

ITC

ITC

Worth a closer look1y model -17.1%

Each stock's 10,000-path forecast, rendered as light.

0Score

ITC (ITC) Stock Analysis & Case Study

Is ITC a good buy? The data-driven verdict.

ITC (ITC) trades at ₹291,on the numbers it worth a closer look, a Downstox Snapshot Score of 69/100.

On the numbers, ITC (ITC) worth a closer look, a Downstox Snapshot Score of 69/100, weighing fairly valued at 17.4× earnings, ROE of 29.3%, a 16% model probability of trading higher in a year. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 20272031.

Last updated . Data snapshot for research, not investment advice.

The Downstox take on ITC

ITC reads like a cash machine first and a growth story second: a near-5% yield, ROCE close to 39%, and a P/E under 18 say the market treats it as a slow, dependable dividend payer rather than a compounder. The real question is whether that low multiple is a bargain or a fair verdict on muted reinvestment appetite. The Piotroski score of 4 is the odd note against such high returns, so watch the underlying trend in margins, cash conversion and debt rather than the headline yield, which can lull you.

Downstox editorial view, written by our own analysts. Information, not investment advice.

ITC fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield

Market cap
₹3.64L Cr
Current price
₹291
P/E ratio
17.4×
P/B ratio
5.03×
Book value
₹58
Dividend yield
4.98%
ROCE
38.9%
ROE
29.3%
Piotroski F-Score
4/9

Is ITC overvalued? ITC P/E vs its FMCG

ITC's P/E of 17.4× sits below the FMCG peer median of 49.7×, so on earnings it screens cheaper than peers, while its 4.98% dividend yield is above the peer median of 1.88%.

ITC P/E
17.4×
Peer median P/E
49.7×
ITC div yield
4.98%
Peer median yield
1.88%

ITC share price target 2027, 2028, 2029, 2030, 2031, a probability view

Unlike a single guessed number, this is a probability-weighted range from a 10,000-path Monte-Carlo simulation on 2.0y of ITC history (-17%/yr drift, 19%/yr volatility).

YearLow (P10)Median target (P50)High (P90)Upside vs today
ITC 2027₹189₹241₹308-17%
ITC 2028₹141₹199₹280-32%
ITC 2029₹107₹164₹251-44%
ITC 2030₹83₹136₹224-53%
ITC 2031₹65₹113₹196-61%

Median (P50) is the central estimate; the P10–P90 band is the 80% confidence range. Probabilities, not promises.

What is the probability ITC goes up, or doubles?

16%
Higher in 1 year
Modelled chance the price is above today in 12 months
1%
Higher in 5 years
Modelled chance the price is above today in 5 years
0%
Doubles in 5 years
Modelled chance of reaching ₹583 within 5 years

The bull case for ITC

  • A 17.4× P/E sits in the fair-value band, neither cheap nor stretched.
  • High return on equity (29.3%), the business compounds shareholder capital efficiently, the hallmark of a quality franchise.
  • Strong ROCE (38.9%) shows the core business earns well above its cost of capital.
  • Pays a 5.0% dividend yield, so you're partly paid to wait.
  • Relatively low volatility (19%/yr), a steadier ride than the typical mid/small-cap.
  • Upside scenario: the model's optimistic (P90) 3-year path reaches ₹251.

The bear case & risks

  • The probability model is cautious 12 months out, only a 16% chance of finishing above today's price.
  • Downside scenario: the model's pessimistic (P10) 3-year path falls to ₹107.

ITC volatility & expected range, how bumpy is the ride?

Over the last 2.0 years ITC compounded at -17%/year with annualized volatility of 19%. That volatility implies a 1-year 80% range of ₹189₹308, the honest backbone behind any single price target.

ITC price forecast, the full 60-month probability fan

Spot Price · Today
₹0
Based on 2.0 years of daily NSE data ·0.0% annualised volatility
5-yr median forecast
₹0
P(price ↑ in 5y)
0%
1-Year Forecast
2027
₹0
Median (P50)
17.1%
80% range₹189–₹308
P(price ↑)16%
P(price 2×)0%
3-Year Forecast
2029
₹0
Median (P50)
43.7%
80% range₹107–₹251
P(price ↑)4%
P(price 2×)0%
5-Year Forecast
2031
₹0
Median (P50)
61.1%
80% range₹65–₹196
P(price ↑)1%
P(price 2×)0%

ITC price probability fan

Each band shows where 10,000 simulated paths land. The wider the fan, the more uncertainty.

Probability Fan
ITC simulated paths · 60 months · 10,000 trials
P10–P90 (80%)P25–P75 (50%)Median (P50)

Probability of key outcomes

What are the odds ITC hits common targets within the simulated horizon?

0%
P(↑ 1Y)
Above today's price in 1 year
0%
P(↑ 5Y)
Above today's price in 5 years
0%
P(2×)
Doubles within 5 years
0%
P(↓)
Falls below today in 5 years

Full multi-horizon detail on the ITC price target & forecast page.

ITC Piotroski F-Score: 4/9, how financially strong is it?

4/9

The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. ITC scores 4/9,mixed financial health.

ITC MTF margin & leverage, Upstox, Zerodha, Groww, Dhan

Margin Trading Facility lets you buy ITC with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):

BrokerMargin requiredApprox. leverage
Upstox26.5%3.8×
Zerodha22.6%4.4×
Groww22.6%4.4×
DhanCHEAPEST22.0%4.5×

Compare every broker on the ITC MTF page.

ITC vs peers,FMCG comparison

StockP/EDiv yieldMarket cap
ITC (this stock)17.4×4.98%₹3.64L Cr
HINDUNILVR33.7×1.88%₹5.13L Cr
NESTLEIND79.4×0.86%₹2.70L Cr
TATACONSUM71.7×0.90%₹1.10L Cr
BRITANNIA49.7×1.73%₹1.26L Cr
DABUR39.3×1.95%₹74,879 Cr
GODREJCP51.4×1.96%₹1.04L Cr

About ITC: sector, index & market-cap context

ITC (ITC) is a large-cap NSE-listed company in the FMCG sector, and a constituent of the Nifty 50 index group, with a market capitalisation of ₹3.64L Cr. See more Nifty 50 stocks.

How the ITC Snapshot Score & forecast are built

The Downstox Snapshot Score is a transparent, rules-based read of ITC's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.

This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.

ITC analysis, FAQs

Is ITC (ITC) a good buy?

On the numbers, ITC (ITC) worth a closer look, a Downstox Snapshot Score of 69/100, weighing fairly valued at 17.4× earnings, ROE of 29.3%, a 16% model probability of trading higher in a year. This is a data snapshot for research, not investment advice.

Is ITC overvalued or undervalued?

ITC trades at 17.4× earnings versus a peer median of 49.7×, so it screens cheaper than its FMCG peers.

What is the ITC share price target for 2031?

ITC's probability-weighted 2031 median target is ₹113, with an 80% range of ₹65₹196 (10,000-path Monte-Carlo).

What is the probability ITC doubles in 5 years?

The modelled probability of ITC reaching ₹583 (2×) within 5 years is 0%.

What is the bull case for ITC?

A 17.4× P/E sits in the fair-value band, neither cheap nor stretched. High return on equity (29.3%), the business compounds shareholder capital efficiently, the hallmark of a quality franchise. Strong ROCE (38.9%) shows the core business earns well above its cost of capital.

What are the risks in ITC?

The probability model is cautious 12 months out, only a 16% chance of finishing above today's price.

More on ITC