Jefferies sees little change in cigarette tax as ITC investors eye India's GST Council meet

ITC

02/09/2025 10:42

** Jefferies says India's overall tax burden on cigarettes may not change, which would be a relief for ITC ITC.NS

** India's GST Council is set to meet on September 3-4 to decide on tax cuts across several categories

** Cigarettes make up about 40% of revenue of diversified conglomerate ITC

** Brokerage says while overall tax burden on cigarettes may not change for ITC, there is a possibility that the salience/mix of ad valorem or specific cess may change

** Maintains "buy" rating on ITC but expects stock to be rangebound "until there is clarity on the revised tax regulations" - Jefferies

** Keeps PT at 535 rupees, ~32% higher than current price

** Avg rating of 37 analysts is "buy", median PT is 496 rupees, ~22% higher than current price - data compiled by LSEG

** YTD, ITC down ~11%

 (Reporting by Anuran Sadhu in Bengaluru)

 ((Anuran.Sadhu@thomsonreuters.com; +91 8697274436;))