ITC Share Price Surges Post Q4 FY25 Results: Dividend Announcement and Market Outlook

On May 23, 2025, ITC Limited’s share price experienced a notable uptick following the release of its Q4 FY25 financial results. The company’s robust performance, coupled with a generous dividend declaration, has caught the attention of investors and market analysts alike.

๐Ÿ“ˆ ITC Share Price Movement

As of 1:10 PM IST on May 23, 2025, ITC’s share price stood at โ‚น438.00, marking a 2.8% increase from the previous close of โ‚น426.10. The stock opened at โ‚น434.00 and reached an intraday high of โ‚น439.00, reflecting positive investor sentiment following the company’s earnings announcement. The 52-week range for ITC shares has been between โ‚น390.15 and โ‚น528.50.

๐Ÿ’ผ Q4 FY25 Financial Highlights

ITC reported a consolidated net profit of โ‚น19,727 crore for the fourth quarter of FY25, a significant increase attributed to exceptional gains. Excluding these gains, the net profit rose marginally by 0.8% year-on-year to โ‚น4,875 crore. The company’s revenue from operations also saw a healthy growth, nearing a 10% increase compared to the same period last year.

๐Ÿ’ฐ Dividend Declaration

In line with its commitment to shareholder returns, ITC announced a final dividend of โ‚น7.85 per share for FY25. This brings the total dividend for the fiscal year to โ‚น14.35 per share, up from โ‚น13.75 in FY24. The record date for the dividend is set for May 28, 2025, with the payment expected in the last week of July.

๐Ÿ“Š Fundamental Metrics

ITC’s financial metrics continue to showcase its strong market position:

  • Market Capitalization: โ‚น5.48 trillion
  • Price-to-Earnings (P/E) Ratio: 26.48
  • Earnings Per Share (EPS): โ‚น16.09
  • Return on Equity (ROE): 28.17%
  • Dividend Yield: 3.22%
  • Debt-to-Equity Ratio: 0.00, indicating a debt-free status

๐Ÿข Business Segments Performance

ITC operates across multiple business segments, including FMCG (Fast-Moving Consumer Goods), Hotels, Paperboards, Paper and Packaging, and Agri-Business. The company’s diversified portfolio has contributed to its resilience and consistent performance.

๐Ÿ“‰ ITC Hotels Demerger

Earlier in the year, ITC completed the demerger of its hotel business, leading to the listing of ITC Hotels as a separate entity on the BSE and NSE. The demerger resulted in an adjustment of ITC’s share price by โ‚น26 on the NSE, reflecting the separation of the hotel business from the parent company.

๐Ÿ“ˆ Analyst Outlook

Analysts maintain a positive outlook on ITC’s stock, citing its strong fundamentals and consistent dividend payouts. Bank of America (BofA) recently raised its price target for ITC to โ‚น470, maintaining a ‘Buy’ rating based on a Sum of the Parts (SoTP) valuation method.

๐Ÿ“ Final Thoughts

ITC’s impressive Q4 FY25 performance and generous dividend declaration have reinforced investor confidence in the company’s long-term prospects. With a diversified business model, strong financials, and a commitment to shareholder returns, ITC remains a compelling investment option in the Indian stock market

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