ITC Share Price Analyzed

ITC’s stock price has fallen quite a bit recently. It’s currently at ₹342.60, which is the lowest it’s been in over a year. This means the value of the company has dropped significantly – around ₹75,675 crore!

Key Points

• ITC stock dropped 2% on Tuesday, hitting a 33-month low.
• The price is down 15% in the last 4 trading days.
• A new tax increase on cigarettes is the main reason for the drop.
• The company’s overall value has decreased by ₹75,675 crore.
• Analysts predict a 5.5% sales decline due to higher prices.
• ITC’s main business (cigarettes) is affected, impacting overall profits.

The problem started because the government changed how much tax is added to cigarettes and other tobacco products. This change happened on December 31, 2025, and it’s going to affect ITC a lot. The government raised the tax rates on cigarettes significantly, making them more expensive.

This is a big deal because for the last five years, things had been relatively calm for the cigarette market. ITC was even able to win back customers. Now, with these higher taxes, prices are going up, and people might switch to cheaper, illegal cigarettes.

Experts say it will take 2 to 3 years for people to fully adjust to the higher prices. In the meantime, ITC’s profits will likely go down because a large part of their income comes from selling cigarettes.

But, ITC also makes other products like food and personal care items. These areas are doing better, with increased demand. Government support, like lower taxes on most products besides cigarettes, and opening more stores, is helping these businesses too.

“A rising tide lifts all boats,” – but for ITC, the tide is currently pulling them down.