Stories
ITC Shares Plummet to Multi-Year Lows: Key Triggers and Risks to Watch
- •ITC shares have corrected over 50 percent from all-time highs, returning to price levels last seen in 2017.
- •Analysts have cut EPS estimates for financial years 2027 and 2028 by 23 percent and 21 percent respectively.
- •The stock currently trades at an attractive dividend yield of 6 percent with lower valuation multiples than its historical average.
- •A massive block deal saw GQG sell a 2.93 percent stake worth nearly ₹9,500 crore to prominent institutional buyers.
- •Key triggers to track include cigarette pricing actions, FMCG growth, paper segment recovery, and regulatory risks.
Key Questions Answered
ITC witnessed a major block deal where 36.66 crore shares, representing a 2.93% stake worth nearly ₹9,500 crore, changed hands. Exchange data revealed that GQG acted as the seller, while institutional buyers included Aditya Birla Sun Life Mutual Fund, Citigroup, Fidelity, and Edelweiss.
Tracking analysts have cut ITC's Earnings Per Share estimates for financial years 2027 and 2028 by 23% and 21%, respectively. Out of 38 analysts covering the stock, 21 hold a buy rating, 15 suggest a hold, and two maintain a sell rating.
Key triggers include the successful pass-through of cigarette tax hikes via price increases, growth in the FMCG segment, and a gradual recovery in the paper segment. Meanwhile, primary risks involve near-term cigarette volume pressures, competition from illicit and branded goods, and potential regulatory actions.
