On Monday, February 3, shares of ITC, Godfrey Phillips, and VST Industries became a hot topic after the Finance Minister announced that there would be no increase in excise duty (tax) on cigarettes and other tobacco products for the year 2025-26. This means tobacco taxes will stay the same, which is great news for these companies.
After the announcement, ITC shares went up by 3.3% to Rs 462, while Godfrey Philips jumped by 9.8%, and VST Industries gained 1.4%. The positive news also came from the government saying that people earning up to Rs 12 lakh a year won’t have to pay income tax. This is expected to increase household income and lead to more spending on everyday products.
ITC has been in the news lately because they split their hotels business, which has begun trading independently. Of the 37 experts who follow ITC, 32 recommend to ‘Buy’, while three say ‘Hold’, and two suggest ‘Sell’.
Brokerage Opinions After the Budget Announcement:
– Jefferies: They maintain a ‘Buy’ rating on ITC and set a target price of Rs 550. They think ITC will do well because there are no new taxes on tobacco. Also, they believe the Goods and Services Tax (GST) will stay the same until March 2026. This stability is good for ITC’s earnings.
– Morgan Stanley: They keep an ‘Overweight’ rating on ITC with a target price of Rs 554. They see a stable tax environment helping ITC grow slowly in the coming years. This should help the company avoid issues with demand in the near future.
(Disclaimer: These recommendations and views are from the analysts and do not represent the opinions of Thellv.news)
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