ITC slides 15% in two days as steep cigarette excise hike triggers Nuvama downgrade
A sharp cigarette excise duty hike effective Feb 1 lifted tax incidence by 30%+, pushing ITC to plan ~20% price hikes. Nuvama downgraded to 'Hold' and cut its target to Rs 415 from Rs 534, flagging demand destruction and illicit-market share gains. FMCG foods and a 4% dividend yield offer partial cushion.
ITC shares fell ~15% after a steep cigarette excise duty hike effective Feb 1. Nuvama downgraded to 'Hold', cutting target to Rs 415, warning of price hikes, demand destruction, and illicit market shifts, offset by FMCG foods and dividend strength.
Why this matters
ITC has been repositioning away from lifestyle retail, exiting Wills Lifestyle, and recently hit 52-week highs as rival Future Group names slumped. The excise-driven selloff marks a sharp reversal for the stock.
Retail-company signals are accelerating, up +736700% QoQ.