ITC Stock Plunges Again: Excise Duty Hike & Downgrades Fuel 4% Drop

• ITC shares fell 4% today, hitting a new 52-week low of ₹345.25, following yesterday's lower circuit.
• The decline is driven by a new excise duty on cigarettes, effective Feb 1, 2025, approved by Parliament.
• ICICI Securities estimates 75-85mm cigarette costs could rise 22-28%, risking a shift to cheaper/illicit alternatives.
• JPMorgan downgraded ITC to Neutral, cutting its target price to ₹375, citing potential volume and earnings impact.
• Nuvama and UBS also adjusted forecasts, expecting increased volatility due to regulatory pressure and tax hikes.

Why It Matters: ITC shares face continued pressure from new excise duties and brokerage downgrades, impacting future growth.