Shares of ITC Ltd (NSE: ITC) declined nearly 1 percent in today’s session, trading at Rs 318.90, down Rs 2.50 or 0.78 percent, compared to the previous close of Rs 321.40. The stock has remained under pressure in recent months and is now down Rs 98.05 or 23.52 percent over the past six months, reflecting weak investor sentiment. Adding to the cautious outlook, global brokerage Nomura has maintained its ‘Reduce’ rating on ITC, with a target price of Rs 318 per share, implying nearly 2 percent downside from current levels. According to the brokerage, lower-than-expected price hikes may cushion volumes in the near term, but are likely to hurt EBIT margins and earnings growth more than earlier anticipated.
Nomura also noted that ITC may be implementing price increases in a phased manner to soften the impact of a sharp volume decline, especially in light of the significant tax hike on cigarettes. However, this strategy could result in margin pressure and subdued growth in the coming quarters, keeping upside limited. Despite the muted stock performance, ITC recently announced an interim dividend of Rs 6.50 per equity share for the financial year ending March 31, 2026. The company fixed February 4, 2026, as the record date, meaning investors holding ITC shares in their demat accounts on that date are eligible for the payout. The dividend will be credited between February 26 and February 28, 2026, providing some near-term support to investor sentiment.
Earlier this month, on February 6, ITC shares had gained nearly 6 percent, snapping a two-session losing streak, and closed over 5 percent higher at Rs 326.35, though the rally proved short-lived. Overall, while the dividend announcement offers temporary support, the brokerage’s cautious stance and weak price trend suggest limited upside for ITC shares in the short term, keeping the stock under pressure.