itc share price
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ITC(Imperial Tobacco company) Ltd’s share was trading around ₹400-₹410 on the National Stock Exchange(NSE), significantly below its recent 52-week high of around ₹465, reflecting a weaker stock performance over the past year.
However at the start of 2026, ITC’s stock experienced a sharp selloff,falling as much as 9-10% in a single session, hitting fresh lows amid market volatility. This decline coincided with a government announcement of new excise duties on cigarettes starting February 1,2026, which spooked investors because cigarettes are major revenue contributor for the company.
On that trading day,ITC’s share dropped nearly 10% , wiping out over ₹50,000 crore in market capitalization — its worst single-day fall in several years.
Company Background and Business Profile
Founded in 1910, ITC Ltd is one of India’s Largest conglomerates. Originally known for Tobacco products, the company has diversified extensively into Fast-moving Consumer Goods(FMCG) such as foods, personal care,and lifestyle products,paperboards and packaging, agri- business, and hotels.
Despite its Tobacco orgins,ITC’s deversified segments have grown in importance over time. Its FMCG business – with brands such as Ashirwad,Sunfeast, and Bingo– has expanded across India,contributing meaningfully to revenues beyond cigarette.
Financial Performance and Valuation
ITC has historically demonstrated solid financial performance and stability.As per recent data.
•Revenue grew over the years- from around ₹679 billion in 2023 to an estimated ₹753 billion in 2024.
• The company reported consistent profitability, with net income growth and robust margins.
•Dividend payouts have been a strong hallmark, with ITC maintaining payouts for over 30 years and yielding around 3-5%, attractive for income- seeking investors.
Market Sentiment and Analyst Views
The recent downturn has affected sentiment.Some brokerages have downgraded ITC’s rating from Buy to Hold due to expected tax- induced price increases on cigarettes, which could dampen volume growth and margins.
On social investment forums and market chat groups, investors discuss whether the recent price decline represents “panic selling” or a long-term buying opportunity –a common debate in equity markets after significant policy-driven drops.
At the same time,the company’s FMCG and non- tobacco business are often cited as growth engines that could support a recovery in earnings and sentiment over the medium to long term.
Outlook
Looking ahead,the ITC share price outlook depends on a few key factors:
- Government policy and cigarette taxation,which directly affects the core tobacco segment’s pricing and volumes.
- FMCG Growth momentum, which can diversify revenue risk away from cigarettes.
- Investors sentiment and broader market conditions, especially given current macroeconomic trends in India’s equity markets.
While short-term volatility remains high due to regulatory pressures, ITC’s diversified portfolio, consistent dividends, and brand strength position it as a stock many investors continue to watch closely.
