ITC falls 15% in 2 days on cigarette excise shock; Nuvama cuts to 'Hold', target Rs 415
A sharp cigarette excise hike (BED to Rs 4,000 per 1,000 sticks) forces 20%+ tax jump, prompting Nuvama to downgrade ITC to 'Hold' and cut target to Rs 415 from Rs 534. Analysts warn of ~20% price hikes and demand destruction, partly offset by FMCG, paperboards and a 4% dividend yield at 85% payout.
ITC shares fell 15% in two days after a sharp cigarette excise hike; Nuvama downgraded to 'Hold', cut target to Rs 415, warning of 20% price hikes and demand destruction, offset by FMCG, paperboards and dividend strength.