ITC slides 15% in two days as cigarette tax overhaul triggers Nuvama downgrade to Hold
A shift replacing compensation cess with higher Basic Excise Duty (Rs 4,000 per 1,000 sticks) from Feb 1 lifts tax incidence 30%+. Nuvama cut ITC to Hold with a Rs 415 target (from Rs 534), citing ~20% price hikes and demand risk. Multiple trimmed to 17x from 23x; 4% dividend yield offers some cushion.
ITC shares fell ~15% over two days after a sharp cigarette tax shift replacing compensation cess with higher Basic Excise Duty from Feb 1. Nuvama downgraded to Hold, cutting target to Rs 415, citing likely 20% price hikes and demand risk.