- Date : 03/02/2023
- Read: 2 mins
ITC shares clock lifetime high amidst a rise in cigarette prices.
The shares of ITC rose from the day's low and ended 2% above upon closing on February 1. Experts think the tax hike on cigarettes is negligible and can be passed on to the customers. India's Finance Minister announced the Union Budget 2023 on February 1. ITC shares fell by 6.5%, hitting the day's low at Rs. 329 on NSE. It happened as the Finance Minister announced a 16% hike in National Calamity Contingent Duty (NCCD) on specified cigarettes. The last time the National Calamity Contingent Duty (NCCD) was revised was three years back. The ITC stock recovered after the announcement by 11% and hit a day's high at Rs. 365.70.
Also Read: Quit smoking and get rich.
Expert Talk
ITC gets over 40% of its total revenue from cigarettes; the other income comes from the hotel business, paper, and FMCG. ICICI Direct believes the cigarette net tax will rise by Rs. 0.007 per cigarette to Rs. 0.12. The price hike will be 1-3% across categories. The firm said the hike is negligible and can be easily passed on to the customer.
Jefferies said that the National Calamity Contingent Duty (NCCD) hike of 16% means a 1-5% tax hike, including a price hike. It is a positive sign for ITC. The government released a note to increase National Calamity Contingent Duty (NCCD) on filter cigarettes below 70mm from Rs. 440 to Rs. 510/1000 from February 2. Filter cigarette duty on cigarettes of over 70mm but less than 75mm has been hiked to Rs. 630/1000 sticks from Rs. 545/1000 sticks.
Also Read: This is what you must know about smoking and health insurance.
Conclusion
The ITC stock formed a pattern of high wave on its daily chart and took support at Rs. 326. The stock has been rising and is on an uptrend, with a 9% increase in the last two weeks. Golden Tobacco is another stock that grew by 2.2%, and Godfrey Phillip was down 4%.
The shares of ITC rose from the day's low and ended 2% above upon closing on February 1. Experts think the tax hike on cigarettes is negligible and can be passed on to the customers. India's Finance Minister announced the Union Budget 2023 on February 1. ITC shares fell by 6.5%, hitting the day's low at Rs. 329 on NSE. It happened as the Finance Minister announced a 16% hike in National Calamity Contingent Duty (NCCD) on specified cigarettes. The last time the National Calamity Contingent Duty (NCCD) was revised was three years back. The ITC stock recovered after the announcement by 11% and hit a day's high at Rs. 365.70.
Also Read: Quit smoking and get rich.
Expert Talk
ITC gets over 40% of its total revenue from cigarettes; the other income comes from the hotel business, paper, and FMCG. ICICI Direct believes the cigarette net tax will rise by Rs. 0.007 per cigarette to Rs. 0.12. The price hike will be 1-3% across categories. The firm said the hike is negligible and can be easily passed on to the customer.
Jefferies said that the National Calamity Contingent Duty (NCCD) hike of 16% means a 1-5% tax hike, including a price hike. It is a positive sign for ITC. The government released a note to increase National Calamity Contingent Duty (NCCD) on filter cigarettes below 70mm from Rs. 440 to Rs. 510/1000 from February 2. Filter cigarette duty on cigarettes of over 70mm but less than 75mm has been hiked to Rs. 630/1000 sticks from Rs. 545/1000 sticks.
Also Read: This is what you must know about smoking and health insurance.
Conclusion
The ITC stock formed a pattern of high wave on its daily chart and took support at Rs. 326. The stock has been rising and is on an uptrend, with a 9% increase in the last two weeks. Golden Tobacco is another stock that grew by 2.2%, and Godfrey Phillip was down 4%.
