ITC share price is hovering around ₹400.60 on NSE in early January 2026, slipping about 0.50% from the previous close of ₹402.60. While short-term volatility has shaken investor confidence, the bigger picture tells a more interesting story — one of resilience, diversification, and long-term potential.
📉 Why ITC Stock Fell Recently
The major trigger came on December 31, 2025, when ITC shares crashed 4.1% to a 21-month low of ₹386.30. The reason? 👉 A 40% excise duty hike on cigarettes announced by the government.
This regulatory shock hit ITC’s core tobacco business hard. Other cigarette makers like Godfrey Phillips also saw sharp declines, proving this was an industry-wide blow, not a company-specific failure.
However, markets don’t stay emotional forever.
📊 Current Trading Snapshot
Despite the pressure, ITC remains a heavyweight:
Day’s range: ₹400.50 – ₹403.45
Volume: 1.23 crore+ shares
Market cap: ₹5.04 lakh crore
52-week range: ₹390.15 – ₹471.50
Key ratios still look solid:
P/E: 14.26
ROE: 28.30%
Dividend yield: 3.56%
These numbers suggest the stock is cheap, profitable, and income-friendly.
💰 Financial Performance: Quiet Strength
ITC’s Q2 FY26 results showed steady growth:
Net profit: ₹5,180 crore (+4.1% YoY)
EBITDA: ₹6,695 crore (+2.1%)
Margins: Improved to 34.7%
While agri-business revenue dropped due to export restrictions, FMCG and cigarette segments compensated well. Even more impressive — FY25 PAT jumped nearly 70% to ₹34,746 crore, reflecting operational strength.
🔍 Analyst View: Still Bullish
Market experts haven’t lost faith:
37 analysts rate ITC as BUY
Average target: ₹495.78
Bullish target: ₹567
Low debt (D/E: 0.01), strong ROCE (38.12%), and growing non-tobacco businesses like FMCG, hotels, and IT keep long-term optimism alive. Yes, FII holding dipped slightly — but domestic confidence remains strong.
🔔 Final Take
Short-term pain from tax hikes is real — but ITC’s fundamentals haven’t cracked. For long-term investors, this phase may look less like a warning and more like an opportunity.
Sometimes, the best stories begin when the stock is silent.
Disclaimer: Yeh views market experts ke hain and not of trueincome. Investment karne se pehle certified advisor se consult zaroor karein.
