Stock Price Movement and Market Context
On 19 Jan 2026, ITC Ltd. touched Rs.327.25, its lowest level in the past 52 weeks, representing a notable drop from its 52-week high of Rs.471.30. Despite outperforming its sector by 0.44% on the day, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
The broader market environment has been challenging, with the Sensex closing at 83,140.14, down 0.51% or 354.35 points after a flat opening. The index is currently 3.63% below its 52-week high of 86,159.02 and has experienced a three-week consecutive decline, losing 3.06% over this period. The Sensex is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating some underlying resilience in the market.
Performance Metrics and Rating Changes
ITC Ltd.’s one-year performance has been disappointing relative to the Sensex, delivering a negative return of 24.87% compared to the Sensex’s positive 8.48% gain. This underperformance extends to longer time frames as well, with the stock lagging the BSE500 index over the past three years, one year, and three months.
Reflecting these trends, the company’s Mojo Score currently stands at 48.0, with a Mojo Grade of Sell, downgraded from Hold on 29 Dec 2025. The market capitalisation grade remains at 1, indicating a relatively low valuation tier within its peer group.
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Financial Performance and Dividend Details
ITC Ltd.’s recent financial results have been largely flat, with the September 2025 quarter showing limited growth. The company’s dividend payout ratio (DPR) on a yearly basis is at a low 51.68%, reflecting a conservative approach to shareholder returns amid the current environment.
Additionally, the debtors turnover ratio for the half-year period stands at 12.97 times, which is among the lowest in recent years, indicating slower collection cycles that may impact working capital efficiency.
Long-Term Fundamentals and Valuation
Despite recent price weakness, ITC Ltd. maintains strong long-term fundamentals. The company boasts an average return on equity (ROE) of 27.82%, with the latest ROE reported at 33.4%. Net sales have grown at an annualised rate of 10.71%, demonstrating steady revenue expansion over time.
The company’s average debt-to-equity ratio remains at zero, underscoring a conservative capital structure with minimal leverage. Valuation metrics suggest a fair price-to-book value of 5.8, which aligns with historical averages and peer valuations.
Profitability has shown improvement, with profits rising by 18% over the past year despite the stock’s negative price return. The price/earnings to growth (PEG) ratio stands at 1, indicating valuation in line with earnings growth expectations.
Institutional Holding and Market Perception
Institutional investors hold a significant stake in ITC Ltd., with 84.83% of shares owned by these entities. This high level of institutional ownership reflects confidence in the company’s underlying fundamentals and long-term prospects, despite recent price volatility.
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Summary of Key Metrics
To summarise, ITC Ltd. is currently trading at Rs.327.25, its lowest level in a year, reflecting a 24.87% decline over the last 12 months. The stock’s downgrade to a Sell grade by MarketsMOJO on 29 Dec 2025 highlights the cautious stance on its near-term outlook. While the company’s fundamentals remain robust, with strong ROE, steady sales growth, and a conservative balance sheet, recent financial results and valuation metrics have contributed to subdued market sentiment.
The broader market context, including a weakening Sensex and sector pressures, has also influenced the stock’s performance. ITC Ltd.’s position below all major moving averages further emphasises the current downward trend in price action.
Conclusion
ITC Ltd.’s fall to a 52-week low at Rs.327.25 marks a significant milestone in its recent price trajectory. The stock’s performance over the past year has lagged behind key benchmarks, and its recent downgrade to a Sell grade reflects the challenges faced in maintaining momentum. Nevertheless, the company’s strong long-term fundamentals and institutional backing provide a foundation that continues to support its valuation amidst a challenging market environment.
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