Shares of ITC Ltd have declined sharply over the past six months, falling 23.37% to ₹311.70 — a drop of nearly ₹95 per share. The correction comes amid broader market weakness, with the NIFTY 50 also slipping 1.31% today to 24,847.60. However, ITC’s fall has been significantly steeper than the benchmark during this period, keeping the stock in focus. The stock had earlier slipped to a fresh 52-week low in the previous session after the excise duty hike came into effect on February 1. On that day, ITC ended 3.91% lower at ₹309.60, reacting sharply to the increase in cigarette duties that was announced at the beginning of the year.As of today, selling pressure persists, with the stock extending losses in line with weak market sentiment.
Importantly, ITC is no longer in the hotel business following the demerger of its hospitality arm into ITC Hotels Ltd. With the separation complete, ITC’s core business profile is now centered on cigarettes, FMCG, agri-business, and paperboards & packaging. This structural shift has changed how investors evaluate the company’s growth outlook and valuation metrics.
The cigarette segment continues to remain ITC’s primary profit driver, delivering strong margins and cash flows. However, investor sentiment has been cautious due to regulatory risks around tobacco taxation, slower rural demand impacting FMCG growth, and margin pressures in the non-cigarette FMCG segment. Profit-booking after the stock’s strong run in previous years has further contributed to the decline.
While the broader market downturn has weighed on large-cap counters, ITC’s correction suggests stock-specific recalibration post-demerger and evolving growth expectations. Analysts note that the company’s strong balance sheet and consistent dividend payouts may provide some downside cushion, but near-term movement is likely to remain tied to earnings performance, consumption trends, and overall market sentiment.For now, ITC remains a defensive heavyweight under pressure — with investors closely watching whether current levels offer long-term value or signal a more prolonged consolidation phase.