FMCG ITC stock price has been in focus due to its completion of the hotel business demerger. At the latest development, the company has announced the allotment of 25,11,71,040 equity shares to its shareholders as part of the demerger. Now, ITC Hotels has ceased to be a subsidiary of the largest FMCG company, ITC Ltd. Though, ITC still holds a 40% stake in the hotels segment. Right after the demerger record date, ITC emerged to become the technical pick of brokerage Prabhudas Lilladher who has recommended a target price of Rs 520, which signals about 17% potential upside.
ITC Share Price:
Last week, on Friday, ITC stock price closed at Rs 444.85 apiece on BSE, with a market cap of Rs 5,56,583.44 crore. The stock's 52-week high and low is at Rs 500.01 apiece and Rs 377.74 apiece respectively. ITC's hotel business demerger record date was on January 6th, and the company on January 11th announced the allotment of 125,11,71,040 equity shares.
During the trading week of January 6-10, ITC shares were down by 2.23% on the BSE. YTD, the stock has dipped by 8% on BSE.
Prabhudas Lilladher Recommends BUY On ITC:
Adding ITC to their technical pick, Vaishali Parekh, Vice President - Technical Research at PL Capital Group - Prabhudas Lilladher said, ITC Ltd, the stock has witnessed a decent erosion from 500 level and with support maintained above the important 200 period MA currently positioned at 440 levels, it has indicated a decent pullback to improve the bias.
Furthermore, Parekh's note said, that with the RSI also getting better, is currently well placed and has much upside potential visible to carry on with the positive move further ahead.
Finally, Parekh said, "With the chart technically looking very attractive, we suggest buying the stock for an upside target of 520, keeping the stop loss of 425 level."
ITC Corporate Actions:
The FMCG giant has rewarded investors with bonus issues, stock splits and dividends over the span of 24 years.
Dividends: The FMCG giant has delivered up to 29 dividends since July 2001, as per Trendlyne data. In the last 12 months, the dividend payout is Rs 13.75 per share. ITC's dividend yield is also among the highest in the sector, at 3.09%.
Bonus Issues: 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.
Stock Split: Further, 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.
ITC's demerger of ITC Hotels has come into effect from January 1, 2025. Now key expectations will revolve around ITC Hotels listing on BSE and NSE, post the deal.
Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.
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