ITC shares hit a nine-month low ahead of the stock turning ex-dividend today. ITC shares ended at Rs 415.40 on June 4, 2024, the lowest close in nine months. In the previous session, ITC stock closed 2.07% lower at Rs 418.45 on BSE. Market cap of the firm stood at Rs 5.23 lakh crore. Total 9.10 lakh shares of the FMCG firm changed hands amounting to a turnover of Rs 38.41 crore on BSE.
The tobacco-to-hotels conglomerate declared an interim dividend of Rs 6.50 per share of Rs 1 each for FY25. Record date for determining the eligible members was fixed for February 12, 2025. The FMCG major has declared a total of 29 dividends since July 3, 2001. ITC stock could deliver double-digit returns of 19.13% in two years. The stock slipped 8.59% in 2025 and lost 10.77% in six months. The ITC stock is trading near its 52 week low of Rs 377.4 reached on March 12, 2024.
The stock has turned weak in terms of technical analysis. ITC shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
The stock has a PE ratio of 25.35 compared to the sector PE of 26.07. Its price-to-book ratio stands at 6.96. In terms of technicals, the relative strength index (RSI) of ITC stock stands at 35, signaling it's trading neither in the overbought zone nor in the oversold zone.
JM Financial has a buy call with a price target of Rs 515.
"Pace of recovery in FMCG needs to be watched due to heightened competitive scenario in Foods. Demerger of Hotels business should reduce capex intensity & help improve ROIC. JM Financial maintains a BUY call with a revised target price of Rs 515 (28x Dec-26 EPS)," said the brokerage.
Nuvama has a price target of Rs 571 on the ITC stock. The brokerage said it stays cautious in near term given the ongoing urban slowdown, inflation in key raw material and weak profitability in FMCG and paperboards, paper & packaging segment.
Nirmal Bang has a hold rating on the stock with a price target of Rs 480. The brokerage is constructive on ITC from a medium term perspective, but sees limited upside in the stock.
ITC’s Q3 results were a mixed bag, said the brokerage adding that cigarette volume growth came in better than expectation, but margin for cigarette and other FMCG segments remained under considerable pressure.