FMCG giant ITC Ltd share price will be in focus on BSE and NSE during Friday’s trade session as the company will pay hefty dividend of Rs 24 per share. ITC had set its dividend payout date from March 6th to 8th. This largecap stock has a price-to-equity ratio of 24.58x, while its return on equity is about 28.31%. It has a potential to cross over Rs 500 mark.

ITC Share Price:

After market hours of February 7, ITC stock stood at Rs 405.75 apiece on BSE, broadly flat with a market cap of Rs 5,07,733.47 crore. The stock’s 52-week high and low is at Rs 500.01 apiece and Rs 377.74 apiece respectively.

However, year-to-date, ITC shares are down by nearly 13%. In the long term, the stock zoomed by 132% in 5 years, emerging as a multi-bagger.

As per Trendlyne, among the positive fundamentals for ITC shares are the Price-to-Earning Ratio of 25.21, lower than its sector PE ratio of 36.63, and the Debt-to-Equity Ratio of zero, as the company is debt-free. Also, the Return on Equity(ROE) for the last financial year was 27.45%, more than 20% in the last financial year, indicating an efficient use of shareholder capital to generate profit.

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 will be paid between Thursday, March 6th, 2025, and Saturday, March 8th, 2025, to those Company members 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, 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 OR SELL ITC Shares?

As per Trendlyne data, the consensus recommendation from 37 analysts for ITC Ltd. is BUY. EPS is expected to grow by 2.8% in FY25. The average 1-year target price is at Rs 534.91, signalling at potential 32% upside ahead.

Brokerage Elara Capital has recommended ACCUMULATE on ITC for a target price of Rs 487. While latest recommendation by Antique Stock Broking is BUY for a 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.”