ITC Ltd. Stock Falls to 52-Week Low of Rs.324.35 Amid Market Downturn

Recent Price Movement and Market Context

On the day the new low was hit, ITC Ltd. saw a day change of -0.49%, moving in line with the FMCG sector’s performance. The stock has been on a downward trajectory for two consecutive sessions, cumulatively losing 2.4% in returns. This decline comes amid a broader market downturn, with the Sensex falling by 240.32 points to 81,554.33, a 0.76% drop, following a negative opening that saw a 385.82-point fall. The Sensex itself is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating some underlying support despite recent weakness.

ITC’s share price is currently below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, underscoring the stock’s recent weakness across multiple timeframes. The 52-week high for ITC Ltd. was Rs.471.30, highlighting the significant gap between the current price and the peak reached within the last year.

Financial Performance and Valuation Metrics

ITC Ltd.’s financial results for the September 2025 quarter were largely flat, contributing to the subdued market sentiment. The company’s Dividend Payout Ratio (DPR) on a yearly basis stands at a relatively low 51.68%, which may be a factor for income-focused investors. Additionally, the Debtors Turnover Ratio for the half-year period is at 12.97 times, marking a low point that could indicate slower receivables collection compared to historical levels.

Over the past year, ITC Ltd. has generated a negative return of 25.72%, significantly underperforming the Sensex, which posted a positive return of 7.58% over the same period. The stock has also lagged behind the BSE500 index across multiple time horizons, including the last three years, one year, and three months, reflecting a pattern of below-par performance in both the near and long term.

Fundamental Strength Amidst Price Weakness

Despite the recent price decline, ITC Ltd. maintains strong long-term fundamentals. The company boasts an average Return on Equity (ROE) of 27.82%, indicating efficient utilisation of shareholder capital. Net sales have grown at an annual rate of 10.71%, reflecting steady top-line expansion over time. The company’s average Debt to Equity ratio remains at zero, signalling a conservative capital structure with minimal reliance on debt financing.

ITC’s current ROE stands at 33.4, paired with a Price to Book Value ratio of 5.8, which suggests a fair valuation relative to its earnings power. The stock is trading at a discount compared to its peers’ average historical valuations, which may be a factor in its current market positioning. Notably, while the stock price has declined by 25.72% over the past year, the company’s profits have increased by 18%, resulting in a Price/Earnings to Growth (PEG) ratio of 1, indicating valuation alignment with earnings growth.

Market Sentiment and Ratings

MarketsMOJO has downgraded ITC Ltd.’s Mojo Grade from Hold to Sell as of 29 Dec 2025, reflecting a more cautious stance on the stock’s near-term prospects. The current Mojo Score stands at 48.0, reinforcing the sell rating. The company’s Market Cap Grade is rated at 1, indicating a relatively lower market capitalisation quality score within the assessment framework.

Institutional investors hold a significant stake in ITC Ltd., with 84.83% of shares owned by these entities. This high level of institutional ownership suggests that investors with substantial resources and analytical capabilities continue to maintain exposure to the company despite recent price pressures.

Comparative Performance and Sector Dynamics

ITC Ltd.’s underperformance is notable when compared to the broader market and sector indices. The Sensex has experienced a three-week consecutive decline, losing 4.91% over this period, which has contributed to a challenging environment for many stocks. However, ITC’s 25.72% negative return over the past year far exceeds the Sensex’s 7.58% positive gain, highlighting company-specific factors influencing its share price.

The FMCG sector itself has been relatively stable, with ITC’s day performance aligning with sector movements. Nevertheless, the stock’s sustained trading below all major moving averages suggests a lack of upward momentum relative to sector peers.

Summary of Key Metrics

To summarise, ITC Ltd. currently trades at Rs.324.35, its lowest level in 52 weeks, with a 52-week high of Rs.471.30. The stock’s recent two-day decline of 2.4% and trading below all key moving averages reflect ongoing price weakness. The company’s flat quarterly results, low dividend payout ratio, and reduced debtors turnover ratio contribute to the cautious market view. Meanwhile, strong long-term fundamentals such as a 27.82% average ROE, steady sales growth, and a zero debt-to-equity ratio provide a backdrop of financial stability despite the share price pressures.

Institutional ownership remains high at 84.83%, and the stock’s valuation metrics indicate a discount relative to peers, with a PEG ratio of 1 and a Price to Book Value of 5.8. The downgrade to a Sell rating by MarketsMOJO further reflects the tempered outlook on the stock’s near-term performance.

Overall, ITC Ltd.’s stock performance at its 52-week low is a reflection of both broader market weakness and company-specific factors, with fundamental strengths continuing to underpin the business amid current valuation challenges.

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