Will ITC Shares Cross Rs 500-Mark After No Sin Tax Hike? Know What Analysts Say

Last Updated: February 04, 2025, 09:59 IST

Ahead of the Budget, specialists had actually stated ITC sees a reduced opportunity of a sharp cigarette tax obligation walk in the budget plan, offered in 2015’s tiny boost

Investor view in the direction of customer staples, specifically ITC, is positioned to enhance adhering to favorable suggestions from Jefferies andMorgan Stanley Both broker agents have actually dramatically elevated their cost targets after Union Finance Minister Nirmala Sitharaman did not reveal any type of boost in wrong tax obligations in the Union Budget offered on February 1, 2025.

Jefferies has actually preserved its Buy score on ITC with a target cost of Rs 550 per share. The broker agent thinks ITC stands to profit dramatically, as the federal government decided not to increase cigarette tax obligations. Moreover, the security in GST prices till March 2026 supplies added quality for the business. While need problems stay rather difficult, Jefferies keeps in mind that the steady tax atmosphere enhances revenues exposure for FMCG business. The individual earnings tax obligation cuts are anticipated to stimulate intake, with ITC placed as a crucial recipient.

Morgan Stanley additionally restated its Overweight position on ITC, establishing a target cost of Rs 554 per share. The broker agent mentioned that the budget plan relieved issues relating to prospective cigarette tax obligation walks, typically viewed as a crucial threat element. With solid principles, ITC is well-positioned for lasting development.

Veteran market capitalist Samir Arora called the Union Budget a “desire Budget” and one of the best in years, particularly appreciating the income tax relief aimed at the right segments of the population.

Raamdeo Agrawal, in an interview with CNBC-TV18, said he expects the additional disposable income from tax cuts for individuals in the Rs 15-24 lakh income bracket (resulting in savings of Rs 70,000-80,000) to boost consumption. “That money will go into consumption, and the market is betting on that,” he included.

According to Motilal Oswal, the steady macroeconomic atmosphere and federal government efforts like constant tax obligation plans must aid ITC preserve quantity development.

Before the Budget, specialists had actually currently expected a reduced likelihood of a sharp boost in cigarette tax obligations, specifically offered in 2015’s moderate walk. Historical patterns reveal that big tax obligation rises typically cause minimal income development and a surge in illegal profession.

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