ITC hikes cigarette prices by 30% but Nomura warns of 20% margin hit – Here is why
Nomura, a Japanese brokerage house, has a ‘Reduce’ rating on ITC with a target price of Rs 318 per share. Lower price hikes may boost volumes, but will impact margins and growth more than expected. ITC may implement multiple price hikes to offset volume drop, but competition in slims remains a challenge. Nomura sees ITC playing the portfolio to recover volumes and gain a competitive advantage.