Brokerages Slash ITC Share Price Target After High Taxes On Cigarettes
Domestic brokerage firms have reduced their share price target for ITC Ltd. after the government imposed an excise duty on cigarettes, effective next month.
Prabhudas Lilladher trimmed its ITC share price target to Rs 348 from Rs 528, and downgraded its stock rating to ‘reduce’ from ‘buy’.
DAM Capital reduced its target to Rs 440 from Rs 500 buy maintained ‘buy’ call on ITC.
Analysts at Prabhudas Lilladher said the cigarette excise opens a “pandora’s box” and they estimate 23-50% hike in prices of various cigarettes post imposition of new excise rates.
According to a Finance Ministry order issued late on Wednesday, the excise duty will range between Rs 2,050 and Rs 8,500 per thousand sticks, depending on product length, from Feb….
