ITC drops 15% in two days on excise shock; Nuvama cuts to 'Hold', target Rs 415
A sharp cigarette excise hike—lifting BED to Rs 4,000 per 1,000 sticks and pushing tax incidence up 30%+—triggered a 15% two-day slide in ITC. Nuvama downgraded to 'Hold' and cut its target to Rs 415 from Rs 534, flagging volume risk from a likely 20% price hike, partly offset by FMCG resilience and a 4% dividend yield.
ITC shares fell 15% over two days after a sharp cigarette excise hike; Nuvama downgraded to 'Hold', cut target to Rs 415, citing tax-driven volume risk offset by FMCG resilience and strong dividend payouts.