Predicting the exact extent of a potential drop in ITC's stock price is challenging due to the influence of multiple dynamic factors, including market sentiment, macroeconomic conditions, and company-specific developments. However, based on available data and recent trends, here’s an analysis of how much ITC’s stock price could potentially drop.
Factors That Could Drive a Larger Drop
BAT Stake Sale Impact: The recent 2.5–2.87% stake sale by British American Tobacco (BAT) caused a 3–5% drop in ITC’s stock price on May 27–28, 2025. If BAT continues to offload its stake (currently ~22.5–22.7%), further selling pressure could push the price lower, potentially toward ₹400 or below, especially if market sentiment remains negative.
Weak Fundamentals: ITC’s Q3 FY25 results showed a 7.51% drop in net profit, and the paperboards segment is under pressure from low-priced imports and subdued demand. Continued underperformance could drive the stock closer to or below the 52-week low of ₹399.
Market and Regulatory Risks: Broader market volatility, such as the 1.4% decline in Indian indices due to India-Pakistan tensions, or potential increases in tobacco taxation (e.g., a proposed 35% GST rate), could exacerbate declines. A severe market correction or adverse policy changes might push ITC toward ₹390–₹400, a 4–7% drop from current levels.
Factors That Could Drive a Larger Drop
BAT Stake Sale Impact: The recent 2.5–2.87% stake sale by British American Tobacco (BAT) caused a 3–5% drop in ITC’s stock price on May 27–28, 2025. If BAT continues to offload its stake (currently ~22.5–22.7%), further selling pressure could push the price lower, potentially toward ₹400 or below, especially if market sentiment remains negative.
Weak Fundamentals: ITC’s Q3 FY25 results showed a 7.51% drop in net profit, and the paperboards segment is under pressure from low-priced imports and subdued demand. Continued underperformance could drive the stock closer to or below the 52-week low of ₹399.
Market and Regulatory Risks: Broader market volatility, such as the 1.4% decline in Indian indices due to India-Pakistan tensions, or potential increases in tobacco taxation (e.g., a proposed 35% GST rate), could exacerbate declines. A severe market correction or adverse policy changes might push ITC toward ₹390–₹400, a 4–7% drop from current levels.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.