ITC shares: A risk or reward for investors? Stock at 52 week low

ITC share price: ITC shares have made a fresh 52-week low of Rs 286 on May 29, strengthening bear grip in the FMCG stock. The stock took out the Rs 287 level hit on March 30 this year as investors reacted to rebalancing adjustment of MSCI in the last 30 minutes of trade on Friday.

The fresh dip in the ITC stock raised year-to-date losses for investors to 21%. ITC investors are sitting on decent losses of 29% in six months and 31% in a year.

ITC shares have come under sustained selling pressure this year after the government announced a steep increase in taxes on cigarettes.

In February 2026, the government overhauled the tobacco taxation structure by replacing the compensation cess with GST while simultaneously raising excise duties on cigarettes. The move led to a significant increase in the overall indirect tax burden on cigarette manufacturers, raising concerns over potential volume growth and profitability.

Reflecting the negative sentiment, ITC stock has weakened considerably on the charts and is currently trading below all its key short-term and long-term moving averages, indicating a bearish trend and subdued investor confidence.

ITC share price targets 

Brokerages remain divided on ITC’s near-term prospects, though most continue to see value in the stock despite recent regulatory headwinds.

Systematix has maintained a ‘Hold’ rating on ITC with a target price of Rs 355. The brokerage highlighted the company’s resilient operating performance, noting that cigarette volumes grew 6.5% year-on-year, while the FMCG business posted 11% growth, driven by strong traction in staples categories such as atta and biscuits.

Antique Broking has assigned a target price of Rs 408 to the stock, reflecting confidence in the company’s earnings outlook and diversified business model.

Sharekhan also remains constructive on ITC, with a target price of Rs 400. The brokerage believes the stock’s attractive valuation and balanced presence across cigarettes, FMCG, hotels and agribusiness provide a strong foundation for future growth.

Global brokerage UBS has reiterated its ‘Buy’ rating on ITC with a target price of Rs 395. According to UBS, the company’s revised pricing strategy should help safeguard cigarette volumes despite the recent tax hikes. 

ITC has adopted a three-pronged approach that includes maintaining same-price offerings across key price-sensitive variants, a move expected to minimise any significant impact on demand. The brokerage further believes that ITC’s earnings performance in FY27 could surpass the market’s more conservative expectations.