A steep tax increase is set to push cigarette prices up by more than 30%, likely hitting overall volumes immediately. But ITC’s bigger headache is competitive: Godfrey Phillips is still gaining share in the regular-sized cigarette market, raising the risk that ITC’s market position worsens even as consumers adjust to higher prices.
Shares of India’s major cigarette companies have surged over the past month, pushing ITC, Godfrey Philips, and VST Industries to record highs. The rally signals strong investor appetite, with the move linked to price increases paired with higher trading volumes. For markets watching consumer staples and volume trends, the sector’s momentum is now impossible to ignore.
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