ITC drops 15% in two days as steep cigarette excise hike triggers Nuvama downgrade
A sharp rise in cigarette excise duty effective Feb 1 wiped ~15% off ITC's value. Nuvama cut the stock to Hold and slashed its target to Rs 415 from Rs 534, flagging 20% price hikes that risk pushing demand toward illegal alternatives. A 4% dividend yield and FMCG diversification offer some downside support.
A sharp rise in cigarette excise duty (effective Feb 1) wiped ~15% off ITC's value in two days. Nuvama downgraded to Hold, cut target to Rs 415, and predicts 20% price hikes, risking demand loss to illegal alternatives. FMCG and dividends provide support.