CROREPATI STOCK: RS 118 DIVIDEND, 3 BONUS - RS 5 LAKH BECOMES RS 1.29 CRORE

Crorepati Stock: Indian stock markets saw a strong start on the first business day of the week, Monday, April 29. The 30-share S&P BSE Sensex surged by 941 points, while the Nifty also breached the 22,600 mark.

Amidst last week's volatility-filled trading sessions, FMCG giant ITC surged by 3 per cent last week, marking its best weekly performance in recent months. With a 1:10 ratio of demerger of ITC Hotels and expansion in international markets, there was brisk trading in ITC shares. Consequently, the focus will remain on ITC's share price for its fourth-quarter and full-year financial earnings report. Despite its low valuation, ITC remains a stock that has the potential to create crorepatis!

ITC Share Price History

Over the past two and three years, ITC's stock has delivered returns of 69.27 per cent and 114.83 per cent respectively. Meanwhile, its all-time gain stands at 2,485 per cent. On January 1, 1999, the stock was priced at Rs. 16.94 per share. If an investor had bought ITC shares 25 years ago for Rs 5 lakh they would have earned around Rs. 1.29 crore by now. This means a profit of Rs. 1.24 crore on an investment of Rs. 5 lakh.

ITC Latest News

ITC is planning an arrangement with its ITC Hotels Business through a scheme. According to regulatory filings, the company will hold an online meeting on Thursday, June 6, 2024, where the proposed arrangement between the respective shareholders and lenders of ITC Limited and ITC Hotels Limited will be approved if deemed appropriate. It is worth noting that ITC is preparing to separate its hotel business from ITC Hotels Limited.

The demerger involves a share swap transaction with an entitlement ratio of 1:10. Unlike mergers/demergers involving various groups of shareholders, 100% of the final financial benefits of the hotel business will accrue to ITC shareholders - 60% directly and 40% through ITC.

ITC Share Price Target 2024

  • In their latest preview report, HDFC Securities has maintained a 'BUY' recommendation on ITC's stock with a target price of Rs 460, which is a short-term call.
  • The brokerage anticipates that the company's cigarette revenue will see a 3 per cent annual growth, and expects a 1 per cent annual volume growth (4 per cent 5-year CAGR for ITC) in Q4.
  • HDFC Securities also expects a growth of 9 per cent/flat/-4 per cent in the company's hotel/agri/paper segment, and a 7 percent annual growth in FMCG segment.
  • HDFC Securities also expects a 2 per cent annual growth in cigarette EBIT, while FMCG EBIT margin is expected to be at 9.5 per cent vs 10.1 per ent annually, and EBITDA growth is expected to be 2 per cent annually.

Meanwhile, ICICI Direct maintains its target price of Rs 500 with an entry price of Rs 420. The brokerage has given 22x importance to ITC's cigarette business earnings for FY 2025 and 6x importance to FMCG business sales for FY 2025.

ITC Dividend History

In the current calendar year, ITC declared an interim dividend of Rs 6.25 per share or 625 per cent for the financial year ending on March 31, 2024. Since July 2001, ITC has issued 28 dividends to its investors. In the last year, ITC has paid dividends to its investors up to Rs 15.75 per share. At its current market price, ITC's dividend yield stands at 3.6 per cent. ITC has paid a cumulative dividend of Rs 118 per share in its history.

ITC Bonus History

The company has issued total 3 bonuses in its history. The recent-most bonus issue was announced in July 2016, where the company issued 2 additional share for each one stock held. The other two bonuses was announced in 2010 and 2005 in the rario of 1:1 and 1:2, respectively.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)

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2024-04-29T11:58:54Z dg43tfdfdgfd