ITC market cap slips below ₹3.4 lakh crore after 34% fall in 2026. Good time to enter? Analysts weigh in
AI Summary
The significant decline in ITC's stock price reflects broader concerns about margin pressures due to rising commodity costs and regulatory changes. For retail investors, this situation presents a mixed bag; while the current low prices might offer a buying opportunity for long-term holders, the potential for reduced cigarette volumes due to price hikes could impact short-term profitability. Investors should closely monitor commodity trends and regulatory developments, as these factors will be crucial in determining ITC's recovery trajectory and overall market sentiment in the FMCG sector.
Diversified conglomerate ITC saw its shares continue to crash on Dalal Street in 2026, hitting multi-year lows as investors appeared to be worried that elevated commodity prices and input costs could hit the company's margins in the near term, with analysts expecting more price hikes to protect margins and the top line.
The Government of India earlier this year imposed a higher excise duty on cigarettes, while ITC has raised prices across several cigarette brands. Although this is expected to improve realizations, the Street remains worried that higher prices could result in a sharper decline in cigarette volumes.
Original Article
Published on Livemint
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This is a market news update from Livemint, published on 29 September 2026.
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