ITC Dividend: Shares of FMCG conglomerate ITC rose 3 per cent to Rs 384.55 on the BSE in Tuesday’s intra-day trade, ahead of record date for interim dividend of Rs 6 per share.
ITC has declared an interim dividend of Rs 6 per share for the financial year 2022-23. In the last 12 months, ITC has declared an equity dividend of Rs 6.25 per share. At current stock levels, this results in a dividend yield of 1.66 percent.
When a company pays an ex-dividend on a particular date, its stock is not worth the next dividend payment. Typically, an ex-dividend date is set a day or two before the record date.
The company has fixed February 15, 2023 as the record date for payment of interim dividend for the financial year 2022-23.
Giving information about the interim dividend, ITC said, “The Board of Directors of the Company, at its meeting held today i.e. February 3, 2023, has declared – (a) an interim dividend of Rs. 6/- per equity share. March 31, 1/- each for the financial year ending 2023; such dividend shall be paid to those members between Friday, the 3rd March, 2023 and Sunday, the 5th March, 2023. (b) of such interim dividend Wednesday, the 15th day of February, 2023 has been fixed as the record date for the purpose of determining the eligibility of members for the
After trading in a range over the past few years, ITC took off last year, delivering 74 per cent returns to investors. It’s been in the top so far this year smelly Performer, with 15 percent returns year-to-date.
In the last one month, the stock has jumped 17 per cent compared to less than 1 per cent rise in the S&P BSE Sensex. Brokers believe that the proposed tax increase on cigarettes in the Union budget 2023 Not much and it will be easily passed through through small price increases.
The cigarette-to-hotel group reported a 21 per cent year-on-year (YoY) rise in net profit to Rs 5,031 crore for the quarter ended December. Revenue from operations, net of excise duty, grew 2.3 per cent year-on-year to Rs 16,226 crore and beat estimates of Rs 16,810 crore.
ITC said economic activity continued to pick up with a sequential moderation in commodity inflation despite core inflation remaining elevated. However, rural demand remained relatively low, he said, while improving sequentially.
Management said, “Stability in the quantum of taxes on cigarettes, supported by preventive actions by enforcement agencies, is leading to continued volume recovery for the legal cigarette industry from illicit trade, thereby boosting demand for Indian tobacco.”
According to Trendline data, ITC has an average price target of Rs 417.29, with an upside of 8.85 per cent from current levels.
ITC continues to see strong growth in cigarette volumes with market share gains and strong traction in Rs 10 per stick price point cigarettes. “We believe this segment is witnessing a robust growth of 20-25 per cent. Stable taxation over the past five years has led to quantum improvements, especially in the post-Covid period. Further crackdown on illegal cigarettes has also helped the legal cigarette industry gain volumes and market share, ICICI Securities said in a result update.
“Given that, the tax hike in Budget 2023 is negligible, ITC will witness robust volume growth in the cigarette business in the future. We revise down our volume growth forecast to 13 per cent to 17 per cent in FY23E. In addition, we expect 5 per cent cigarette volume growth in FY24,” the brokerage firm said.
ITC also benefited from strong growth in hotel, paperboard and FMCG businesses Margins improved significantly due to strong hotel occupancy, higher value addition in paperboard and operating profit in FMCG business, analysts said with a revised target price of Rs. Have asked to maintain buy recommendation. 450 per share from earlier Rs 405 per share.
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