ITC The Nifty Stock That Fell 34% From Its Peak | Is ITC a Buy, Hold or Avoid?
Sensex ended Monday 544 points higher at 78,639 and Nifty jumped 391 points to 24,774 — its fourth straight session of gains — as crude oil corrected sharply on US-Iran peace talks, with Nifty IT, FMCG and PSU Banks leading the rally. ITC was among the FMCG gainers on Monday, rising about 1.8 per cent — but the stock's bigger story is far more uncomfortable than one day's move.
The 52-week high stands at Rs 427. The current price is Rs 281 — a fall of 34.19 per cent from the peak, with the stock just 2.18 per cent above its 52-week low of Rs 275 hit on June 4. For a company with a market cap of Rs 3.52 lakh crore and DII ownership of 49.13 per cent — among the highest institutional holdings on the Nifty — that kind of underperformance demands an explanation.
The Q1 FY27 results delivered one. Net profit fell 16.21 per cent year on year to Rs 4,394 crore, even as revenue from operations surged 27.64 per cent to Rs 29,523 crore. The cigarette segment, ITC's biggest profit engine, was hit by steep excise duty hikes in the Union Budget, with brokerages now forecasting cigarette volume declines of 5 to 10 per cent across FY27. The agri business was also hurt by lower exports due to West Asia conflict disruptions.