Cigarette Tax Hike: Brokerages Slash ITC Ratings, Stock Plunges

• Brokerage firms Motilal Oswal, Nuvama, and JPMorgan downgraded ITC's ratings and target prices.
• The downgrade follows a new additional excise duty on cigarettes and tobacco products effective February 1, 2026.
• ITC's share price fell approximately 10% on January 1 due to the news.
• Firms like Nuvama and Motilal Oswal reduced their ratings from "Buy" to "Hold" or "Neutral," significantly lowering price targets.
• Brokerages anticipate ITC will need to increase product prices by 20-35% to offset the tax, impacting sales volume and earnings.

Why It Matters: New excise duty on cigarettes leads brokerages to downgrade ITC, signaling potential stock pressure.