ITC share price surged 3% on Tuesday, following a 6.5% rise on Monday, crossing the Rs 500 mark for the first time. The rally was driven by Finance Minister Nirmala Sitharaman’s budget speech, which left tobacco taxes unchanged, providing relief to ITC and other tobacco stocks.
ITC shares soared to a record high on Tuesday, adding another 3% following a 6.5% surge on Monday. The stock crossed the Rs 500 mark for the first time, surpassing the previous record high of Rs 499.7.
The rally was driven by Finance Minister Nirmala Sitharaman’s budget speech, which included no changes to tobacco taxation, bringing relief to ITC and other tobacco-related stocks.
Read More: Stocks To Watch Today: HUL, Bajaj Finance, Vedanta, Axis Bank and Others
Jefferies on ITC
Brokerage firm Jefferies upgraded ITC to “buy” from its previous “hold” rating and raised its price target to Rs 585 from Rs 435. This new target is the joint highest for ITC alongside B&K Securities.
Jefferies noted that ITC has emerged as a “clear winner” with the unchanged tobacco taxes and anticipated stability in GST taxes until March 2026, as the central government settles state dues. Consequently, Jefferies upgraded ITC’s Earnings Per Share (EPS) estimates by 1-2%.
Macquarie on ITC
Macquarie also adjusted its forecasts, raising ITC’s EPS estimates by 2% for the financial years 2025, 2026, and 2027, citing expected better volume growth due to the unchanged tax landscape. Macquarie increased its price target on ITC to Rs 560 from Rs 535.
Read More: Stock Market Updates: Sensex, Nifty Open Low In Early Trade
Morgan Stanley on ITC
Morgan Stanley has reiterated its Overweight rating on ITC, setting a target price of Rs 506. The firm’s report notes that the recent budget addresses a key concern by avoiding increases in tobacco taxes, which provides relief from potential near-term demand disruptions.
This move is also seen as indicative of a stable policy environment moving forward. Morgan Stanley believes ITC is well-positioned to benefit from these conditions and views the company as a strong candidate for re-rating in the future.
Read More: ICICI Prudential Life Insurance net profit up 8.7% in Q1 FY25 at Rs 225 crore
ITC Stock Performance in Last One Year
The shares of ITC have demonstrated positive returns across various time intervals. In the last month, the stock delivered a positive return of 18.67%. Over the past six months, it exhibited strong momentum with returns of 8.35%, indicating a robust performance.
Year-to-date figures further emphasized the stock’s bullish trend, recording an impressive growth of 7.32%. Looking at the broader horizon, the shares have shown consistent strength, given returns of over 6.43% in the last year.
(Disclaimer: Views, recommendations, and opinions expressed are personal and do not reflect the official position or policy of Financial Express.com. Readers are advised to consult qualified financial advisors before making any investment decisions. Reproducing this content without permission is prohibited.)
