Godfrey, VST Industries, ITC — Tobacco Stocks Tumble On Fear Of Possible GST Hike On Cigarettes
Shares of Godfrey Phillips India Ltd. and VST Industries Ltd. took a hit during trade on Monday, after reports of a potential hike on GST on cigarettes. The move may follow the removal of compensation cess.
Currently, cigarettes and other tobacco products have a 28% GST levy, among others. The total tax burden of the commodity stands at 53%. One of the options being considered by the government is to increase GST to 40%, which is the highest permissible slab, and add an excise duty on top of that, Economic Times reported.
Share price of Godfrey Phillips saw significant decline of over 6%, while VST Industries shares fell nearly 3%. ITC Ltd. stock was trading flat.
Godfrey Phillips Share Price
Godfrey Phillips stock fell as much as 6.82% during the day to Rs 5,391.8 apiece on the NSE. It was trading 6.11% lower at Rs 5,433 apiece, compared to a 1.01% decline in the benchmark Nifty 50 as of 10:31 a.m.
It has risen 4.02% in the last 12 months. Total traded volume so far in the day stood at 1.7 times its 30-day average. The relative strength index was at 71.56.
The only analyst tracking the company has a 'sell' rating on the stock according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 5,340, implying a downside of 2.2%
VST Industries Share Price
VST shares fell as much as 2.96% during the day to Rs 270.4 apiece on the NSE. It was trading 2.48% lower at Rs 271.75 apiece, compared to a 1.01% decline in the benchmark Nifty 50 as of 10:36 a.m.
The stock has fallen 19.17% in the last 12 months. The total traded volume so far in the day stood at 1.8 times its 30-day average. The relative strength index was at 46.48.
The only analyst tracking the company has a 'sell' rating, according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 327, implying a downside of 20.1%.
ITC Share Price
ITC Ltd. stock was trading flat at Rs 401.35 apiece, compared to a 0.97% decline in the benchmark Nifty 50 as of 10:48 a.m.
It was down 16.93% in the last 12 months and the relative strength index was at 14.8.
Thirty five out of 40 analysts tracking the company have a 'buy' rating on the stock, three recommend a 'hold' and two suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 511.8, implying an upside of 27.5%.
Despite these stock movements, it is important to note that cigarettes fall under the giffen goods category. This means that people buy more of these commodities even when the price increases.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
