Recent Price Movement and Market Context
On the day the new low was hit, ITC’s stock price declined by 0.55%, moving in line with the broader FMCG sector’s performance. The Sensex opened higher at 82,459.66, gaining 550.03 points (0.67%), but later moderated to trade near 81,994.02, a marginal increase of 0.1%. Despite this, the Sensex has experienced a three-week consecutive fall, losing 4.39% in that span. Meanwhile, the BSE Mid Cap index outperformed, gaining 0.84% on the same day.
ITC’s share price currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish momentum. This technical positioning underscores the stock’s recent weakness relative to its historical price levels.
Performance Over the Past Year and Longer Term
Over the last 12 months, ITC Ltd. has delivered a negative return of 26.12%, a stark contrast to the Sensex’s positive 7.32% gain over the same period. The stock’s 52-week high was Rs.471.3, indicating a substantial decline of approximately 31.9% from that peak. This underperformance extends beyond the one-year horizon, with ITC lagging behind the BSE500 index across the last three years, one year, and three months.
Financial Metrics and Company Fundamentals
ITC’s recent financial disclosures reveal a mixed picture. The company reported flat results for the quarter ending September 2025, which contributed to the subdued market sentiment. The Dividend Payout Ratio (DPR) for the year stands at a relatively low 51.68%, reflecting a conservative approach to shareholder returns compared to historical norms.
Additionally, the Debtors Turnover Ratio for the half-year period is at 12.97 times, the lowest recorded in recent assessments, indicating a slower collection cycle that may affect working capital efficiency.
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Valuation and Fundamental Strength
Despite recent price declines, ITC maintains strong long-term fundamental metrics. The company boasts an average Return on Equity (ROE) of 27.82%, with the latest ROE reported at 33.4%. Net sales have exhibited healthy growth, increasing at an annual rate of 10.71%, signalling steady expansion in revenue streams.
ITC’s debt profile remains conservative, with an average Debt to Equity ratio of zero, underscoring a low leverage position. The stock’s Price to Book Value ratio stands at 5.7, indicating a fair valuation relative to its earnings power and asset base. Notably, ITC is trading at a discount compared to its peers’ average historical valuations, which may reflect market caution amid recent performance trends.
Profitability has improved over the past year, with profits rising by 18%, even as the stock price declined. The company’s Price/Earnings to Growth (PEG) ratio is 1, suggesting that earnings growth is reasonably aligned with its valuation.
Shareholding Pattern and Market Perception
Institutional investors hold a significant stake in ITC Ltd., accounting for 84.83% of the shareholding. This high level of institutional ownership indicates confidence from entities with extensive analytical resources and a long-term perspective on the company’s fundamentals.
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Summary of Rating and Market Grade
According to the latest assessment dated 29 Dec 2025, ITC Ltd.’s Mojo Score stands at 48.0, with a Mojo Grade of Sell, downgraded from a previous Hold rating. The Market Capitalisation Grade is rated at 1, reflecting the company’s large market presence but tempered by recent performance metrics.
This rating change aligns with the stock’s recent price action and financial results, signalling a cautious stance from rating agencies amid the prevailing market conditions.
Conclusion
ITC Ltd.’s stock reaching a 52-week low of Rs.321.2 marks a notable point in its price journey, reflecting a combination of subdued quarterly results, valuation adjustments, and broader market dynamics. While the company continues to demonstrate strong fundamental attributes such as robust ROE, steady sales growth, and low leverage, the stock’s recent underperformance relative to benchmarks and peers has influenced its current market standing.
Investors and market participants will continue to monitor ITC’s financial disclosures and sector developments as the stock navigates this phase of price consolidation and valuation reassessment.
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