HDFC Bank, the banking giant; ITC and Hindustan Unilever (HUL), the fast moving consumer goods (FMCG) majors; Dabur India, personal care products company; and UPL, pesticides & agrochemical company, from the BSE 500 index hit their respective 52-week lows on the BSE in Wednesday’s intra-day deals.
Indian Railway Finance Corporation (IRFC), Procter & Gamble Hygiene and Health Care and KEC International are the other three stocks from the index to also hit 52-week lows in intra-day trade. These stocks were down 1 per cent each, compared to 0.5 per cent decline in the BSE Sensex.
Among individual stocks, HDFC Bank hit a fresh 52-week low of ₹715.05, falling below its previous low of ₹722 touched on August 12, 2026. HUL was down 1 per cent at ₹2,015.20, declining below its earlier low of ₹2,019 hit on July 28, 2026. Share price of ITC hit a 52-week low for the third straight day, down 1 per cent to ₹268.20.
Thus far in the calendar year 2026 (CY26), ITC (down 34 per cent), HDFC Bank (down 28 per cent) and Dabur India (down 21 per cent) underperformed the market by falling more than 20 per cent each. While, the remaining four stocks declined in the range of 30 per cent to 42 per cent.
HUL, however, slipped 13 per cent so far in CY26. In comparison, the BSE Sensex was down 9.8 per cent during the same period. According to the shareholding pattern data disclosed by the companies, foreign portfolio investors (FPIs) reduced stake in ITC and HDFC Bank for the fourth straight quarter.
However, mutual and retail individual shareholders increased their holdings in these companies during the past two quarters. The low Liquidity Coverage Ratio (LCR) of 115 per cent along with the stretched credit-deposit (CD) ratio of 96 per cent limits the HDFC Bank’s ability to grow at a faster pace.
Consequently, loan growth has been supported by higher growth in the wholesale portfolio, which weighed on the net interest margin (NIM) performance, analysts at JM Financial Institutional Securities said in the Q1 result update. Nevertheless, the brokerage firm said they are positive on NIM performance over the medium term, driven by a gradual run-off of high-cost borrowings.
Further, the bank’s pristine asset quality should keep credit cost contained. Analysts expect it to deliver 15 per cent loan and 14 per cent earnings per share (EPS) compound annual growth rate (CAGR) over FY26–28E, translating into an average RoA/RoE of 1.8 per cent/14 per cent over FY27–28E.
HDFC Bank is entering the early stages of a margin and ROE inflection rather than a stabilization phase. The post-merger decline in ROE from the pre-merger high teens to approximately 13 per cent to 14 per cent has been the key overhang on the stock.
Analysts at Deven Choksey Research expect ROE to bottom out and gradually improve through FY27E and FY28E. For ITC, analysts at Motilal Oswal Financial Services (MOFSL) in the Q1 result update said that the price hike on cigarettes is slower than expected and is expected to impact earnings in FY27.
This strategy can lower the loss of consumers to illegal cigarettes, but it is adding a near-term earnings risk. ITC is still under the transitory phase in terms of passing on the entire tax hike to consumers. Thus, the brokerage firm believes the cigarette revenue and earnings before interest and tax (EBIT) performance will be volatile in the near term.
FMCG business continues to perform well with robust improvement in margins. However, analysts believe earnings pressure on cigarettes would offset the near-term catalysts (recovery in FMCG and Paper) and comfort on valuation. ITC has a full cigarette portfolio to better navigate the tax increase, but competitive pressure from illicit cigarettes will take a toll on the formal cigarette industry, MOFSL said.
Meanwhile, the FMCG sector continues to witness resilient consumer demand, with most companies indicating that underlying consumption trend remains healthy. Rural demand continues to outpace urban markets. At the same time, premiumisation remains intact, as consumers continue to trade up across categories, said analysts at Choice Institutional Equities.
On the negative side, raw material has started seeing an inflationary trend. Brent crude and palm oil respectively remained elevated by 47 per cent and 13 per cent on year-to-date (YTD) basis, which might keep margins under pressure. A majority of the FMCG companies took 2–5 per cent price hike in Q1FY27 and project further price hike in Q2FY27 if raw material prices remain elevated.
Going forward, raw material inflation, monsoon trajectory, festive and wedding season will be the key things to watch out in the sector, the brokerage firms said in FMCG sector update. Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard.
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