ITC Shares Sink to New 52-Week Low Despite Market Recovery

Tue Mar 31 2026

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The ITC has touched its 52-week low of ₹287.00 per share on 30th March, 2026 and is currently trading 0.24% above this level. The ITC’s recent price leads market volatility and other price backdrops, and the Sensex has also reflected a sharp decline, while the ITC has underperformed its sector with a one-year return of -29.72% compared to the Sensex’s -6.95%. The whole sector belongs to the Cigarettes/Tobacco group, which has also declined by 2.35%, but ITC has also sustained in this group.

The main reasons for selling pressure across sectors, such as weak sentiment, global uncertainties, and cautious investors, weigh on these sectors. The selloff this year followed the government’s announcement of an excise duty hike on cigarettes.

Table of Contents

ITC: Key Reasons for the Share Price Falling

Here are several reasons behind the ITC share price falling, such as a sharp increase in Cigarette Taxes, Heavy Dependence on the cigarette business, Earnings Pressure and Muted Growth, brokerage downgrades and earnings cuts, and Broader Market Pressure.

Sharp Increase in Cigarette Taxes: The biggest reason for the decline in ITC Limited’s shares is the recent increase in excise duty on cigarettes. Since this is ITC’s most profitable segment, any increase in duty will directly affect its sales.
Heavy Dependence on the Cigarette Business: ITC still relies on its cigarette segment for a large share of its profits. Although the company has diversified into the FMCG segment, hotels, and other businesses, the cigarette segment continues to generate profits. Therefore, the company is vulnerable to any changes in regulations, especially taxation policies
Earnings Pressure and Muted Growth: The company’s earnings growth has been low in recent times. The company is facing high input costs, which is hindering the growth in profits.
Brokerage Downgrades and Earnings Cuts: In the backdrop of increased taxes and concerns about earnings, brokerages’ recommendations on ITC also show some impact. Many brokerages have downgraded the stock and lowered earnings estimates.
Broader Market and Sector Pressure: The fall in ITC’s stock price can also be attributed to the overall market decline and pressure in the FMCG space. The overall market is going through difficult times due to various factors, including global market uncertainty and foreign investor sell-offs.

ITC: An Overview

ITC Limited is an Indian conglomerate headquartered in Kolkata and active in FMCG, agribusiness, information technology, paper products, and packaging. The total revenue of the ITC is ₹81,612 crore, with operating income of ₹27,147 crore. The stock’s premium valuation is due to falling prices, which are affecting market sentiment and fundamental performance. In terms of market capitalisation, ITC is the second-largest FMCG company in India and the third-largest tobacco company in the world.

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ITC Share: Analysts’ Outlook

Some analysts said that sudden increases and declines in the ITC share price lead to uncertainty, and that incremental pricing actions and their impact on volumes and EBIT growth in FY27 could be key catalysts. Goldman Sachs has revised its share price target to ₹330 from ₹385. Referring to the recent price hike in cigarettes, the brokerage said that the price increases are not a one-shot tax hike.

Market Overview, Rally in Benchmarks

Indices Up: Sensex and Nifty 50 have risen in this quarter due to the bullish investor sentiment on economic growth, strong sector earnings, and supportive policies.
Sector Leaders: Tech, banking, and consumer tech stocks have supported and lifted overall market sentiment.
Market Breadth: Last week, more stocks rose than fell, reflecting higher trading volume and stronger buying interest.
Contrast with ITC: While the broader market recovered, the ITC has continued its decline, affecting the overall trend.

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Conclusion

Recently, the ITC shares dipped to a new low of 52 weeks at around Rs. 287 to Rs. 288. It is evident that the company is facing a sharp decline in its stock price in the financial year 2026. The main reason behind this is the sharp hike in the excise duty and taxes imposed by the government on the sale of cigarettes. It is evident that the company is facing challenges with its core business, as the sale of cigarettes is a major contributor to the company’s earnings of the company. Moreover, the company is facing difficulties in its overall market performance, trading at lower levels.