Cigarette Price Hike: ITC has increased the prices of select cigarette brands, including Classic Connect and Gold Flake Super Star. Following the price revisions, ITC shares attracted strong buying interest during Wednesday’s trading session and gained nearly 3%.
The company’s stock opened at ₹259.40 on the NSE and touched an intraday high of ₹264. It eventually closed at ₹264.15, registering a 2.38% rise from the previous session.
Classic Connect and Gold Flake Super Star Become Costlier
The maximum retail price of a 20-cigarette pack of Classic Connect has increased from ₹390 to ₹428. This represents a rise of nearly 10%.
Gold Flake Super Star has also become more expensive. The price of a 10-cigarette pack has moved up from ₹79 to ₹89, marking an increase of more than 12%.
The price revisions come after changes to the tax structure for cigarettes and other tobacco products. From February 1, the GST rate on these products was increased to 40%, along with a new additional excise duty structure.
Cigarette manufacturers, including ITC, have subsequently raised prices on certain products to help offset the impact of the higher tax burden.
Why Did ITC Shares Rise?
ITC witnessed notable buying activity after the latest cigarette price increases. Mahesh M Ojha, Vice President of Research and Business Development at KC Securities, linked the movement in ITC shares to the price revisions across selected cigarette brands.
According to Ojha, higher prices could support the company’s profitability and margins, which may be reflected in upcoming quarterly results.
SEBI-registered market expert Anuj Gupta also pointed to ITC’s strong financial position. He said the recent price adjustments across some cigarette brands could provide further support to the stock following the correction seen in the Indian equity market.
ITC Share Price Outlook
Gupta identified the ₹265–₹268 range as an important resistance zone for ITC shares. He said that a sustained move above this level could potentially result in around 10% upside in the short term.
Ojha advised existing ITC shareholders to hold the stock with a stop-loss at ₹248. According to his view, a move above ₹268 could lead to a rally towards ₹290 in the near term.
For new investors, Ojha suggested considering the stock above ₹268, with a short-term target of ₹290 and a strict stop-loss of ₹255.
These price targets and trading levels are the views of the respective market experts cited above and are not guaranteed outcomes.