ITC Share Price Highlights: How has been the historical performance of ITC Share?

ITC Share Price Highlights: How has been the historical performance of ITC Share?

ITC Limited Share Price Historical Performance

ITC Limited a diversified conglomerate with dominance in cigarettes (80% organized market share), FMCG, paperboards, and agri-business, has shown steady long-term growth despite recent underperformance. As of late November 2025, its share trades around ₹402-404, with a market cap of ₹5.06 lakh crore, P/E of 25.2, and dividend yield of 3.56%.​

Long-Term Returns

• Over 30 years (1990-2025), ITC stock rose from lows near ₹2.35 to highs of ₹528.50, delivering compounded growth through resilience in core segments.​

• 10-year CAGR stands at 7-9.6%, with price moving from ₹167 in 2015 to ₹417 by 2025 (149.5% total return); 5-year CAGR at 17% amid volatility.​

• 3-year return at 8-11%, supported by ROE averaging 25-28% and ROCE near 37%, though 1-year return lags at -10% to -15% due to sales growth slowdown (8.81% over 5 years).​

Dividend Track Record

ITC maintains 30+ years of uninterrupted payouts, with a healthy 78.6% payout ratio and yields around 3-5%. Recent highlights include ₹14.35/share for FY25 (highest in 5 years) and Q1 FY26 dividends, balancing reinvestment in FMCG diversification.​

Key Financial Trends

Sales grew from ₹35,306 Cr in FY14 to ₹78,552 Cr TTM, with operating profit margins stable at 34-38%; profit jumped to ₹35,351 Cr TTM, boosted by other income (₹17,684 Cr). Debt-free status and high ROE (27.3%) underline strength, though trading at 7x book value signals premium valuation.

ITC Limited valuation and dividend history analysis:

Valuation Metrics

• As of late 2025, ITC trades at a price-to-earnings (P/E) ratio of approximately 25.3 (trailing) and 23.1 (forward), indicating moderate premium valuation relative to earnings expectations. Its price-to-book (P/B) ratio is around 7.1, reflecting a premium over book value consistent with large FMCG companies. The price-to-sales ratio hovers near 6.4, and the price-to-tangible-book-value (P/TBV) is about 7.6. Its PEG ratio stands at 2.5, suggesting growth expectations factored into the price.​

• The dividend yield is close to 3.6%, supported by a consistent payout ratio around 78%. ITC maintains strong return ratios: an ROE around 28% and ROCE near 37%, highlighting efficient capital use and profitability despite relatively slower sales growth (~8.8% over five years).​

Dividend History Highlights (Recent Years):

• FY 2025: Interim dividend ₹6.50 per share, final dividend ₹7.85 per share; total ₹14.35 with yield ~3.6%.​

• FY 2024: Interim ₹6.25, final ₹7.50.​

• FY 2023: Interim ₹6.00, final ₹6.75, plus a special dividend ₹2.75.​

• Dividends have steadily grown over the past decade and include interim, final, and occasional special dividends. For example, 2015 final dividend was ₹6.25, and in 2010, a special dividend was issued reflecting strong capital return philosophy.​

This mix of stable yield and premium valuation supports ITC’s position as an attractive dividend-paying large-cap stock with decent growth metrics, backed by a diversified business model and resilient financial strength. Investors generally value it for steady income and moderate capital appreciation potential.