FMCG giant ITC share price has continued to correct significantly, so much so that by end of the March 3rd session, it was merely Rs 20 away from hitting its 52-week low of Rs 377.74 apiece on BSE. The stock performance comes ahead of its massive dividend payout of Rs 24 per share which is likely to be delivered between March 6th to 8th. The highest buy target on ITC is above Rs 540 levels.
ITC Share Price:
After market hours on March 3rd, ITC stock closed at Rs 397.55 apiece, up by 0.7% on BSE with a market cap of Rs 4,97,433.62 crore. The stock is now Rs 19.81 per share away from hitting its 52-week low of Rs 377.74 apiece. The stock is down by 20.5% from its 52-week high of Rs 500.01 apiece.
The stock's price-to-equity ratio is at 24.08x, while return on equity is about 28.31%. YTD, the stock dropped by over 14.5%. In six-months, the downside is above 18%.
BUY ITC Stock?
Brokerage Elara Capital has recommended ACCUMULATE on ITC for target price of Rs 487. While latest recommendation by Antique Stock Broking is BUY for target price of Rs 542, which if touched, will be ITC's new record high.
Also, brokerage 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. 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 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.
About ITC:
ITC is a leading multi-business Indian enterprise with presence in FMCG, Paper, Packaging, Agribusiness and IT, and is a global Sustainability exemplar.
ITC is the country's leading FMCG marketer, the clear market leader in the Indian Paperboard and Packaging industry, a globally acknowledged pioneer in farmer empowerment through its wide-reaching Agri Business, a pre-eminent hotel chain in India that is a trailblazer in 'Responsible Luxury'. ITC's wholly-owned subsidiary, ITC Infotech, is a specialized global digital solutions provider.
Over the last decade, ITC's new Consumer Goods Businesses have established a vibrant portfolio of 25+ world- class Indian brands that create and retain value in India. ITC's world class FMCG brands including Aashirvaad, Sunfeast, Yippee!, Bingo!, B Natural, ITC Master Chef, Fabelle, Sunbean, Fiama, Engage, Vivel, Savlon, Classmate, Paperkraft, Mangaldeep, Aim and others have garnered encouraging consumer franchise within a short span of time. While several of these brands are market leaders in their segments, others are making appreciable progress.
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