ITC Shares Plunge 5% to 52-Week Low Amid Excise Duty Hike & Rating Downgrades

• ITC shares dropped over 5% to a fresh 52-week low after the government imposed a new excise duty on cigarettes.
• The Central Excise (Amendment) Bill, 2025, introduces an excise duty of Rs 2,050–8,500 per 1,000 sticks from February 1.
• This new duty, in addition to 40% GST, is expected to increase overall costs by 22-28% for certain cigarette lengths.
• JPMorgan, Nuvama, Jefferies, and Motilal Oswal downgraded ITC's rating and reduced target prices.
• Analysts predict ITC will need significant price hikes (25-40%) to offset the tax, potentially impacting volumes and earnings.

Why It Matters: New excise duty on cigarettes triggered ITC share fall and multiple brokerage downgrades.