ITC, Godfrey Phillips India, VST Industries shares rise up to 12% today; here's why
Godfrey Phillips shares surged 12% to Rs 2315 against the previous close of Rs 2067.75. Market cap of the firm rose to Rs 35,836 crore.
- Feb 18, 2026,
- Updated Feb 18, 2026 10:55 AM IST
Shares of cigarette makers ITC, Godfrey Phillips India and VST Industries rose up to 12% on Wednesday amid reports of price hikes. Cigarette manufacturers such as ITC and Godfrey Phillips have passed the effect of excise duty hikes to consumers, leading to retail price hikes of 15–20% across most brands.
UBS said this pricing approach is likely to keep ITC's volume and EBIT impact from excise duty hike in the beginning of this month to minimum. It is now clear that price hikes have been fully passed on in premium cigarettes, while it is kept minimal in price sensitive segments of 69mm and 64mm.
ITC's cigarette business accounts for more than 40 per cent of the company's total revenue alone. The brokerage assigned a buy call on the ITC stock with a price target of Rs 395 against the earlier Rs 420.
As per B&K Securities channel checks, ITC has effected steep price hikes across some categories. This negates excise hike impact and adds to EBIT per stick.
Meanwhile, ITC shares rose 1.69% to Rs 330.80 against the previous close of Rs Rs 325.30. Market cap of the firm rose to Rs 4.11 lakh crore. The FMCG stock has gained for the third session today.
Shares of another cigarette maker Godfrey Phillips surged 12% to Rs 2315 against the previous close of Rs 2067.75. Market cap of the firm rose to Rs 35,836 crore.
VST Industries shares too rose 3.32% to Rs 247.40 in trade today. Market cap of the firm stood at Rs 4,158.20 crore.
The government announced a significant hike in cigarette taxation effective from February 1, 2026. This tax structure replaces the previous 28% GST plus compensation cess with a higher 40% GST and a newly introduced per-stick excise duty based on cigarette length. A pack of 10 cigarettes is likely to cost at least Rs 22– Rs 25 more, with premium brands potentially seeing price hikes up to Rs 55 per pack.
Shares of cigarette makers ITC, Godfrey Phillips India and VST Industries rose up to 12% on Wednesday amid reports of price hikes. Cigarette manufacturers such as ITC and Godfrey Phillips have passed the effect of excise duty hikes to consumers, leading to retail price hikes of 15–20% across most brands.
UBS said this pricing approach is likely to keep ITC's volume and EBIT impact from excise duty hike in the beginning of this month to minimum. It is now clear that price hikes have been fully passed on in premium cigarettes, while it is kept minimal in price sensitive segments of 69mm and 64mm.
ITC's cigarette business accounts for more than 40 per cent of the company's total revenue alone. The brokerage assigned a buy call on the ITC stock with a price target of Rs 395 against the earlier Rs 420.
As per B&K Securities channel checks, ITC has effected steep price hikes across some categories. This negates excise hike impact and adds to EBIT per stick.
Meanwhile, ITC shares rose 1.69% to Rs 330.80 against the previous close of Rs Rs 325.30. Market cap of the firm rose to Rs 4.11 lakh crore. The FMCG stock has gained for the third session today.
Shares of another cigarette maker Godfrey Phillips surged 12% to Rs 2315 against the previous close of Rs 2067.75. Market cap of the firm rose to Rs 35,836 crore.
VST Industries shares too rose 3.32% to Rs 247.40 in trade today. Market cap of the firm stood at Rs 4,158.20 crore.
The government announced a significant hike in cigarette taxation effective from February 1, 2026. This tax structure replaces the previous 28% GST plus compensation cess with a higher 40% GST and a newly introduced per-stick excise duty based on cigarette length. A pack of 10 cigarettes is likely to cost at least Rs 22– Rs 25 more, with premium brands potentially seeing price hikes up to Rs 55 per pack.