. ITC shares near 52-week lows
- ITC stock has fallen about 35% from its 52-week high, with analysts divided on its outlook.
- The key concern is whether recent cigarette price hikes (implemented after tax increases) will reduce sales volumes and impact earnings growth.
2. FMCG sector rally benefits ITC
- ITC was among the major gainers as the Nifty FMCG index outperformed the broader market.
- Lower crude oil prices are improving sentiment toward consumer companies by reducing packaging and input costs.
3. Recent stock performance
- On June 10, ITC shares rose about 1.3%, outperforming the broader market for the day.
- Despite recent gains, the stock remains roughly 34% below its 52-week high.
4. Corporate restructuring approved
- The National Company Law Tribunal (NCLT) approved the amalgamation of Sresta Natural Bioproducts and Wimco Limited with ITC, effective June 1, 2026.
5. ITC Hotels update
- Investor GQG Partners sold ITC Hotels shares worth approximately ₹197 crore, drawing market attention to the hospitality business.
What investors are watching
- Impact of cigarette tax hikes on demand.
- Growth of ITC’s non-cigarette FMCG businesses.
- Upcoming earnings performance and management commentary.
- Recovery potential after the sharp correction in the stock price
The long-term outlook will depend on how effectively ITC balances growth in FMCG while navigating challenges in its core businesses.The GQG Partners stake sale in ITC Hotels is definitely drawing a lot of attention to the hospitality segment. It’s encouraging to see the Nifty FMCG index outperforming and providing a strong buffer for ITC.