ITC Share Price: ITC shares slipped over 1 per cent on Friday as the large-cap FMCG stock faced selling pressure following the government’s move to impose
a new excise duty on tobacco products. The development has sparked debate among investors: Is this a buying opportunity or a signal to exercise caution amid expectations of higher cigarette prices? A market expert noted that while near-term volume growth could be impacted by price hikes, ITC’s long-term fundamentals remain strong and relatively resilient. Currently, the market cap of the company is Rs 4,22,476.52 crore as per BSE data. Know at which levels you should buy ITC stock, what is the target price and find out with which strategy you can make money in this stock. The government notified February 1 as the implementation date for these new levies.
ITC Stock Analysis
Speaking to ET NOW Swadesh, market expert Avinash Gorakshakar of Profitmart shared his outlook on ITC shares amid concerns over the upcoming Union Budget and the new excise duty on cigarettes effective from February 1, 2026.He expects the stock price to remain slightly subdued or trade a bit lower ahead of the Budget due to market worries about potential impacts on volume growth from the excise duty hike, which could significantly affect the company's performance.
ITC Share Price Support
However, he sees strong support in the Rs 330–340 range and believes value buying could emerge at these levels.ITC Share Price Target
Gorakshakar advises short-term and near-term traders to avoid entering the stock at this juncture.For long-term investors, he views Rs 335–340 as an attractive accumulation zone, offering good value.That said, he cautions that the stock may remain range-bound until clarity emerges on pricing strategies and volume trends post the excise changes.
Overall, his recommendation is positive for patient, long-term holders but cautious in the near term.
ITC Share Price Today
At 12:33 PM on January 9, the stock was trading at Rs 337.20, down 1.09 per cent from its previous closing on BSE.
Excise on Tobacco Products
The government has notified February 1 as the date from which additional excise duty on tobacco products, and a health cess on pan masala will be levied.
The new levies on tobacco and pan masala will be over and above the GST rate, and will replace the compensation cess, which is currently being levied on such 'sin goods'.
From February 1, pan masala, cigarettes, tobacco and similar products will attract a GST rate of 40 percent, while biris' will attract 18 percent Goods and Services Tax (GST), according to a government notification.
On top of this, a health and national security cess will be levied on pan masala, while tobacco and related products will attract additional excise duty.
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(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
