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Shares of ITC ended trading lower by nearly 1.5 per cent on Monday as brokerages either maintained or cut their target price on the stock following Q2 results.
Cigarette volumes may decline further if the government implements another tax hike, they said.
The company shares ended down by 1.56 per cent at Rs 265.15 on the BSE. On the NSE, the stock fell 1.54 per cent to Rs 265.20.
The cigarette segment, which contributes half of ITC’s revenue, is under “tremendous pressure from a sharp increase in taxes over the last few quarters,” the company had said in a statement on Friday.
Demand for fast moving consumer goods remains sluggish after the Goods and Services Tax disrupted the distribution channel, ITC added.
Edelweiss has maintained 'Hold' rating with a target price of Rs 307 per share; Kotak Institutional Equities has maintained 'Add' with the target price revised to Rs 310 from Rs 340; and UBS has maintained rating at 'Buy' with a target price of Rs 350.
Jeffries' target price remains the same at Rs 305 but the stock has been upgraded to 'Buy' from 'Hold' and Macquarie has maintained 'Neutral' with a target price of Rs 304.
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