ITC shares rebounded after a significant decline. Should you buy the stock now? Brokerages offer their opinion based on Q3 results.

News Topical, Digital Desk : After a major fall on January 1, ITC shares are now witnessing a rise. In fact, after the third quarter (ITC Q3 Result), ITC shares have gone up by 2 percent on January 30. FMCG sector giant ITC Limited released its December quarter results after market hours on Thursday. A slight increase has been recorded in the company's revenue and net profit in Q3.

ITC shares opened at Rs 318 in the morning and touched a high of Rs 325 in the initial trade. It is noteworthy that the company's shares have touched a 52-week low by reaching Rs 316 today.

Target price on ITC shares

Following the announcement of a tax increase on cigarettes and tobacco, ITC shares fell by 10% on January 1st and continued to decline throughout the month. During this period, ITC shares fell from ₹402 to ₹316, a decline of 20%.

• Emkay Global has reduced the target price on ITC shares to Rs 350.
• ICICI Securities has given a target of Rs 350 on ITC shares while giving ADD rating.
• Motilal Oswal has given a target price of Rs 365 with a rating of Neutral.

Brokerage view on ITC's business

Brokerage firm Emkay Global has maintained a cautious stance on ITC following the company's third-quarter results, citing challenges arising from the new Goods and Services Tax (GST) and excise duty rates on cigarettes and tobacco effective February 1. The brokerage firm said the company's revenue grew steadily by 6 percent and net cigarette sales by 8 percent in the third quarter. However, the significant increase in taxes will force the company to significantly increase cigarette prices.

Read More: Stock Market Crash: Sensex drops 600 points ahead of Budget; find out 8 reasons for this massive decline