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Shares of ITC Limited slipped nearly 1% in intraday trade as investors booked profits after the stock gained more than 4% last week
ITC
ITC Share Price: Shares of ITC Limited slipped nearly 1% in intraday trade on Monday, February 23, as investors booked profits after the stock gained more than 4% last week. The decline came despite firm broader market sentiment.
ITC opened flat at Rs 327, unchanged from its previous close, and fell 0.80% to an intraday low of Rs 324.40 on the NSE. In contrast, the benchmark Nifty 50 rose 0.80% to an intraday high of 25,771.
ITC Share Price Trend
The stock had touched a 52-week low of Rs 302 on February 2 but saw mild buying interest thereafter, supported by cigarette price hikes.
So far in February, ITC is up about 1.5% after declining for three consecutive months. In January, the stock plunged 20% following a sharp hike in cigarette taxes. Over the past year, the stock has fallen more than 18%.
An additional excise duty on cigarettes and other tobacco products, over and above the highest 40% GST slab, came into effect on February 1.
Is It the Right Time to Buy?
Analysts continue to hold a broadly positive long-term view on ITC Limited, although near-term caution persists due to uncertainty around how recent cigarette price hikes could affect volumes.
Nandish Shah, AVP–PCG Research and Advisory (Fundamental) Wealth Management at Motilal Oswal Financial Services, has maintained a ‘neutral’ rating on the stock with a target price of Rs 365. According to Shah, ITC’s core cigarette business delivered a steady performance in the third quarter, while the FMCG segment recorded healthy growth in operating profit. However, the changes in GST and excise duty — effective February 1, 2026 — have resulted in a sharp increase in cigarette taxation.
Although cigarette manufacturers have raised prices to offset the higher tax burden, Shah noted that the eventual impact on volumes remains uncertain. While ITC’s diversified product portfolio across price segments offers some resilience, increased competition from illicit cigarette trade could weigh on the organised industry’s growth.
From a technical standpoint, Jigar S. Patel, Senior Manager – Equity Technical Research at Anand Rathi Share and Stock Brokers, pointed out that the stock is currently trading within the 50%–61.8% Fibonacci retracement zone of its major rally from the COVID-era lows to the September 2024 peak. This zone is typically viewed as a strong support area, often signalling potential consolidation before the next directional move.
Patel expects the stock to trade in a range of Rs 335 to Rs 300 in the near term. Momentum indicators such as the RSI are hovering in oversold territory, suggesting that selling pressure may be nearing exhaustion and that a gradual pullback is possible.
He recommends accumulating the stock in the Rs 335–305 band, with an upside target of Rs 385 and a strict stop loss below Rs 285 on a closing basis. The suggested investment horizon for this strategy is three to four months.
Despite short-term headwinds, experts remain optimistic about ITC’s structural growth drivers. The company has demonstrated strong pricing power, successfully implementing price increases of 20%–40% across key brands to protect margins. Long-term growth is expected to be supported by a recovery in urban consumption, improving hotel occupancy levels, and expansion of the non-cigarette FMCG business, which has set a revenue target of Rs 1 lakh crore by 2030.
That said, analysts highlight three primary risks: regulatory uncertainties related to tobacco taxation, competitive pressure from illicit cigarette trade, and commodity price inflation. Even so, with a dividend yield of around 4.4% and relatively attractive valuations, the stock continues to appeal to value-focused investors looking to accumulate within the Rs 335–305 range, with a potential upside towards Rs 385.
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February 23, 2026, 14:51 IST
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