1:10 Split, 3 Bonuses, 29 Dividends: FMCG Stock ITC Gives 48.38% ROE: BUY This BlueChip For Rs 480-505 TP

FMCG giant ITC stock price is the underdog in the sector, with low price-to-equity ratio (PE) of 14.46x but a high return on equity (ROE) of 48.38% as of November 6, 2025, as per BSE data. The stock has been trading around Rs 400 levels for quite some time, waiting for its big jump. ITC is currently between its 52-week high and low of Rs 471.30 apiece and Rs 391.50 apiece. That being said, after decent Q2 results for FY26, the majority of brokerages have recommended BUY on ITC with fresh record targets.

ITC Ltd Share Price:

Currently, ITC share price is at Rs 407.30 apiece on BSE, with market cap of Rs 5,10,258.83 crore. The stock has corrected by nearly 2.5% over the past five days.

Low PE Ratio: ITC's PE ratio is at 14.46x.

High ROE: As of November 6, 2025, ITC's return on equity stood at 48.38%.

Debt-To-Equity Ratio: ITC has a zero debt to equity ratio, meaning, the company is not relying on borrowing for financing its operations.

ITC Corporate Actions:

The FMCG giant holds a strong record of rewarding investors with bonus and dividends, while it has split once in its history.

Bonus Issue: The first time ITC turned ex-bonus was on September 21, 2005 for its bonus issue ratio of 1:2. After this, the FMCG player carried 1:1 bonus in August 2010 and 1:2 bonus in July 2016.

Stock Split: The stock has split once in its history and that was in September 2005. The stock split ratio was of 1:10, where the face value of Rs 10 was trimmed to Re 1.

Dividends: ITC has distributed at least 29 dividends since July 2003, as per Trendlyne data. In the past 12 months, the stock has paid up to Rs 14.35 dividend per share. Its current dividend yield is about 3.5%.

BUY ITC Stock Price?

According to analysts at Axis Direct, ITC's revenue declined by 3.7%, largely impacted by a weak performance in the Agri business. However, Ex-Agri Business, revenue grew by 7.1% yoy. The Cigarette segment delivered 6.7% YoY growth, supported by resilient volumes and sustained premiumisation, while the FMCG (ex-Notebooks) segment reported a healthy 8% YoY growth.

Further, during Q2FY25, the company's gross margins expanded by 284 bps YoY to 54%, driven by easing input costs. EBITDA increased by 2.1% YoY, with margins improving by 201 bps YoY to 35.1%. PAT came in at Rs 5,180 crore, up 4.1% YoY.

Accordingly, the analysts said, "We believe ITC's long-term growth trajectory remains intact, with most business segments maintaining steady progress. Cigarette volumes continue to grow, supported by ongoing innovation and sustained premiumisation. The FMCG portfolio has seen an improvement in demand momentum and is positioned for a recovery. Government budgetary measures, the recent GST rate reduction, an expanding outlet network, localisation initiatives, and a continued premiumisation focus are expected to further drive growth in H2FY26."

They have recommended BUY with target price of Rs 480.

Meanwhile, the highest target price is set by ICICI Securities. In their note, analysts said, "We believe FMCG business EBIDTA margins improving to low-to-mid teens and stark recovery in the performance of paperboard, paper and packaging business will key for ITC earnings to get back in double digit trajectory in the coming years. Stock continues to trade at discounted valuation of 21x and 19x its FY27E and FY28E. We recommend Buy with a SOTP price target of Rs505."

If ITC hits Rs 505 target, that would gains of nearly 24% from the current levels.

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