ITC’s share price fell by 0.64% to Rs. 417.95, reflecting broader market weaknesses despite a series of significant corporate announcements. The company declared dividends of Rs. 13.75 per share for fiscal years 2024 and 2025. Additionally, ITC’s Board of Directors is set to discuss the potential voluntary delisting from the Calcutta Stock Exchange on October 30, 2025.
The decline in ITC’s share price occurred even as the company reported key developments. At the time of writing, ITC shares were trading at Rs. 417.95, down from the previous closing price of Rs. 420.65. The stock initially opened higher at Rs. 420.50, but could not maintain that momentum, reaching a low of Rs. 416.25 and a high of Rs. 421.65 during the trading session. The company’s market capitalization stands at approximately Rs. 5.23 lakh crore, with around 8.1 million shares traded.
Corporate Announcements and Governance Enhancements
ITC has made a series of substantial announcements, emphasizing its commitment to corporate governance and shareholder engagement. The company appointed Chandra Kishore Mishra as an Independent Director for a term of five years starting from September 14, 2024, and Siddhartha Mohanty as a Non-Executive Director for the Life Insurance Corporation, effective January 1, 2025. Both appointments received strong support from shareholders, with nearly 99.83% voting in favor.
Additionally, ITC 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, showcasing the company’s dedication to maintaining a consistent payout history.
In a move to enhance employee retention and welfare, ITC has allocated 898,540 ordinary shares from its employee stock option schemes in December 2024. This action increased the firm’s total share capital to approximately Rs. 1,251.17 crore. Furthermore, the Board has proposed a new Employee Stock Appreciation Rights Scheme, allowing for a limit of 2% of the company’s total share capital.
Delisting Plans and Market Performance
One of the most notable developments is ITC’s proposal to voluntarily delist its shares from the Calcutta Stock Exchange. The Board will review this proposal, which aligns with the company’s strategy to streamline its listing framework. ITC shares remain actively traded on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), which account for almost all its market liquidity.
Despite the recent decline in share price, ITC’s financial fundamentals indicate a sound position. The trailing twelve-month (TTM) earnings per share (EPS) stands at Rs. 27.86, reflecting a year-on-year increase of 69.65%. The TTM price-to-earnings (P/E) ratio is 15.01, positioning ITC as relatively undervalued compared to its sector’s average P/E of 14.97. The stock’s price-to-book (P/B) ratio is 7.48, and its dividend yield of 3.43% appeals to income-focused investors.
In the past year, ITC’s share price has decreased by 8.75%, although it has experienced a remarkable rise of approximately 167% over the last five years. The stock has fluctuated within a 52-week range of Rs. 493.45 at its highest and Rs. 390.15 at its lowest.
Analyst sentiment toward ITC remains optimistic. Among 33 analysts surveyed by Moneycontrol, 64% recommend a Buy rating, while 30% suggest an Outperform rating. Only 3% of analysts recommend holding or underperforming the stock. While short-term volatility due to profit-taking and market fluctuations persists, ITC’s stable dividends and strong earnings growth reinforce its status as a reliable long-term investment.
Looking ahead, the upcoming Board announcement regarding the delisting and the company’s ongoing focus on creating shareholder value are likely to influence stock performance in the coming sessions.
The decline in ITC’s share price today is attributed to moderate profit booking after recent gains. Despite the positive corporate announcements, market sentiment remained cautious amid broader market challenges.
In summary, ITC’s corporate strategies, including recent appointments and dividend declarations, alongside the proposal for delisting, position the company strategically within the market. Its robust financial metrics and analyst recommendations suggest it remains a compelling option for long-term investors despite today’s stock performance.
