1:10 Split, 3 Bonus; FMCG ITC Stock Is Rs 24 Away From Lows, To Pay 650% Dividend In March; Geojit Says BUY

FMCG giant ITC stock price has nosedived by nearly 14% year-to-date ahead of its 650% interim dividend payout by March 6, 2025. FMCG stock came under pressure after reports of GST hike on tobacco products circulated, as investors concern rose over spike in cigarettes prices which could impact earnings. By the end of February 27, ITC struggled to hold Rs 400 levels and is currently nearly Rs 24 away from hitting new lows. Overall, its February 2025 month is on a bearish tone.

ITC Share Price:

After market hours, ITC stock price stood at Rs 401.45 apiece on BSE, with a market cap of Rs 5,02,313.49 crore. The stock was near its intraday low of Rs 399.45 apiece. From CMP, the heavyweight stock is now Rs 23.71 away from crossing its 52-week low of Rs 377.74 apiece. The stock has dropped by nearly Rs 100 compared to its 52-week high of Rs 500.01 apiece.

So far, ITC's monthly decline is about 10.3% on BSE, while year-to-date, the stock dropped by 13.7%.

ITC Dividend:

ITC shares turned ex-dividend on February 12, for its interim dividend of Rs 6.5 per share or 650% for FY25. The dividend is going to be paid between Thursday, 6th March 2025 and Saturday, 8th March 2025 to those Members of the Company entitled thereto.

As per Trendlyne data, ITC has delivered about 28 dividends since July 2003. In the past 12 months, ITC paid dividends amounting to Rs 14.00 per share. Currently, ITC has one of the highest dividend yields of 3.49% in the FMCG sector.

ITC also has rewarded investors with bonus issues and stock splits since 2001.

The company has a strong track record of bonus shares. The last bonus was of 1:2 ratio in July 2016, while ITC delivered 1:1 and 1:2 bonus ratios in August 2010 and September 2005. ITC has overall delivered 3 bonus shares.

Additionally, ITC has carried a single stock split so far. In September 2005, ITC's shares split from Rs 10 face value to Rs 1 each, hence a ratio of 1:10.

BUY ITC Share?

In its latest report, Geojit said, ITC has entered into a definitive agreement to acquire Ample Foods Pvt Ltd, including its subsidiary Chao Foods Pvt Ltd, and Meat and Spice Pvt Ltd, which own the brands Prasuma and Meatigo. The acquisition will be completed in phases over three years, beginning with a 43.8% stake for Rs. 131 crore by May 2025, increasing to 62.5% by April 2027 and reaching full ownership by June 2028, based on pre-agreed valuation criteria. Also, the nicotine project is in the advanced stages of finalisation for product trials, with a focused business development strategy in place to drive scale-up. Export shipments are expected to begin soon.

On the valuation, Geojit said, "ITC demonstrated resilience despite a subdued demand environment. The long-term outlook remains positive, supported by a strong share in the cigarette market, stable tax rates in the segment and expected rural demand recovery. Additionally, improving urban demand, increasing nicotine exports and benefits from acquisitions are expected to drive growth."

Finally, Geojit's note said, "Overall, the strategic price hikes, cost optimization efforts, product innovation and expanding distribution network bode well for the
company. Therefore, we upgrade our rating to BUY on the stock with a revised target price of Rs. 449, based on SOTP valuation methodology."

ITC is a leading multi-business Indian enterprise with presence in FMCG, Paper, Packaging, Agribusiness and IT, and is a global Sustainability exemplar.