ITC’s share price fell by 0.64% to Rs. 417.95, reflecting broader market weakness despite several significant corporate developments. The company announced dividends of Rs. 13.75 per share for the financial years 2024 and 2025, alongside the planned voluntary delisting from the Calcutta Stock Exchange (CSE) to be discussed on October 30, 2025. This decline occurred even as the market absorbed multiple key announcements from the hotel and consumer goods giant.
The stock opened slightly higher at Rs. 420.50 but could not maintain its momentum, dipping to a low of Rs. 416.25 before closing at Rs. 417.95. The previous day’s closing price was Rs. 420.65, indicating a notable drop in investor confidence. ITC’s market capitalization stands at approximately Rs. 5.23 lakh crore, with about 8.1 million shares traded during the day.
Key Corporate Announcements
ITC’s recent announcements demonstrate a commitment to corporate governance and shareholder engagement. The company has appointed Chandra Kishore Mishra as an Independent Director for a five-year term starting September 14, 2024, and Siddhartha Mohanty as a Non-Executive Director representing LIC for three years from January 1, 2025. These appointments received overwhelming support from shareholders, with nearly 99.83% voting in favor.
In terms of dividends, ITC has declared a final dividend of Rs. 7.50 per share for FY 2024 and an interim dividend of Rs. 6.50 per share for FY 2025. This brings the total dividend for FY 2024 to Rs. 13.75 per share, reinforcing the company’s longstanding tradition of returning value to shareholders.
Employee Incentives and Future Plans
In a move to bolster employee retention and motivation, ITC allocated 8,98,540 ordinary shares from its employee stock option schemes in December 2024. This initiative increases the company’s total share capital to approximately Rs. 1,251.17 crore. Additionally, the Board has proposed the introduction of a new Employee Stock Appreciation Rights Scheme, capped at 2% of the company’s total share capital. These efforts reflect ITC’s strategy to reward employee contributions while aligning with shareholder value creation.
One of the most notable developments is ITC’s intention to voluntarily delist its shares from the CSE. This decision aims to streamline the company’s listing framework, as its shares are actively traded on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), which together handle nearly all of ITC’s market liquidity.
Stock Performance and Analyst Sentiment
Despite the recent decline, ITC shares exhibit a fundamentally strong profile, underpinned by robust financials. The trailing twelve-month (TTM) earnings per share (EPS) stands at Rs. 27.86, marking a year-on-year increase of 69.65%. The stock’s price-to-earnings (P/E) ratio of 15.01 suggests it is relatively undervalued compared to its sector P/E of 14.97. Furthermore, ITC’s price-to-book (P/B) ratio of 7.48 is average, while a dividend yield of 3.43% appeals to income-focused investors.
The stock has experienced an 8.75% decrease over the past year, yet it has appreciated by nearly 167% over the last five years. The shares have fluctuated between a 52-week high of Rs. 493.45 and a low of Rs. 390.15.
Analysts maintain a positive outlook on ITC. Of the 33 analysts surveyed by Moneycontrol, 64% recommend a ‘Buy’, while 30% suggest an ‘Outperform’. Only 3% recommend holding or selling the stock. Analysts attribute this bullish sentiment to ITC’s stable dividends, strong earnings growth, and commitment to corporate governance, making it a preferred choice for long-term investors.
Investors should be aware that while short-term volatility may arise from profit-taking and overall market conditions, ITC’s consistent focus on enhancing shareholder value and its upcoming Board decisions regarding delisting could influence stock performance in the near future.
Overall, ITC remains a compelling investment option, balancing short-term challenges with solid long-term growth potential.
