ITC drops 15% in two days as cigarette excise hike triggers Nuvama downgrade
A sharp excise duty hike effective Feb 1 pushed tobacco tax incidence up ~30%, prompting Nuvama to cut ITC to 'Hold' and slash its target to Rs 415 from Rs 534. Expect ~20% price hikes and demand risk, though FMCG, paperboards and a 4% dividend yield offer some support.
ITC fell 15% in two days after a sharp cigarette excise duty hike (effective Feb 1). Nuvama downgraded to 'Hold', cutting target to Rs 415, predicting 20% price increases and demand risks, but citing FMCG/paperboards and dividend support.