Cigarettes

Since the tax hike announcement made at the beginning of the year, cigarette stocks have declined between 10-17%. Industry leader ITC has emerged as the top loser as the Nifty 50 stock is down 17.55% at the ₹300 levels currently.

Wigand said his first thought when he learned about the trial in California was that social media companies were using their advertisements to try to get children addicted, much like the big tobacco companies he exposed.

Cigarette stocks have rebounded up to 26% from their February lows amid reports of price hikes by the companies to mitigate the impact of excise duty increases. Analysts advise remaining selective for now.

The rally in cigarette stocks comes amid several reports that these companies have taken steep price hikes to offset the impact of the excise duty increase.

Godfrey Phillips, VST Industries, and ITC shares declined up to 8% after a price hike on cigarettes due to new excise duties. Concerns over sales and profitability grow as consumers face higher costs for popular brands.

An additional excise duty on cigarettes and tobacco products, and a health cess on pan masala, will come into effect from 1 February.

Social media was flooded with netizens sharing screenshots showing an AQI of 899 from 7:00 AM on November 6, as they hoped that the administration would declare a health emergency and shut schools and offices.

Godfrey Phillips India shares dropped over 65% on September 16 due to a 2:1 bonus issue record date. The corporate action resulted in tripling the number of shares held by investors while adjusting the stock price accordingly. The stock opened at ₹3,501 but surged to ₹3,720 after the adjustment.

Godfrey Phillips India's stock rebounded 13.5% to ₹10,975 after recent declines. The company's strong quarterly results initially boosted shares, but fears of a 40% GST on sin goods caused volatility. The firm reported significant revenue growth and strengthened partnerships during June quarter.

Indian cigarette makers outperformed expectations in Q1 FY26, with Godfrey Phillips showing a 36.5% YoY revenue growth. ITC also reported a 7.6% rise in its cigarette business, despite facing challenges in other FMCG segments. Godfrey Phillips' shares surged by 90% this year.