Adobe Stock
ITC shares tumbled around 3.3 per cent today (May 28, 2025) after British American Tobacco (BAT) sold a chunk of its holding, worth over Rs 13,000 crore The deal was struck at Rs 405 per share, well below the market price, which was enough to rattle investors.
So, why did the stock fall?
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Big money gone:
BAT sold its stake of nearly 2.3 per cent in ITC, which was worth Rs 11,600 crore, in one go.
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Discounted price:
Shares sold at Rs 405 versus a market price of over Rs 425. That stung.
- More uncertainty expected: BAT still owns a 27 per cent stake in ITC. Investors fear this might just be the beginning of the tobacco giant offloading its holdings.
About the company
ITC is a cigarette-to-shampoo giant trying hard to pivot away from its tobacco tag. Cigarettes still mint the cash, but FMCG, hotels, paper and agri are slowly picking up steam.
Here's a look at its fundamentals.
| Metric | Value |
|---|---|
| Market cap | Rs 5.26 lakh crore |
| ROE | 29.1 per cent |
| ROCE | 37.9 per cent |
| P/E ratio | 15.1 |
| P/B ratio | 7.5 |
| Dividend yield | 3.3 per cent |
| Book value | Rs 56 |
| EPS | Rs 15.9 |
How does Value Research rate ITC?
As per Value Research Online , ITC has an impressive overall rating of 4/5.
Here's how it fares on other parameters.
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Quality:
10/10
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Growth:
6/10
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Valuation:
5/10
- Momentum: 2/10
Should you be worried?
If you're holding ITC for the long run, this isn't panic time. The fundamentals are intact. The dividend is healthy. And the core businesses are chugging along.
The business hasn't changed, but the sentiment has. Keep calm and hold if you're in for the long haul.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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