Indian Tobacco giant ITC making new lows day by day. Today it hit new low of 186.55 intraday but was able to close day little higher at 187.5 as whole market recovered from days low in late trading session. ITC stock drop 6.35 points or 3.28 % in todays trade. These levels were seen last in ITC Ltd in 2012-2013. ITC have good support around 178 to 182 level.
In 2020-21 budget , finance minister Nirmala Sitharaman had proposed to increase the National Calamity Contingency Duty (NCCD) on cigarettes, hookah, chewing tobacco, snuff and tobacco extracts and essence.ITC stock had reacted harshly on budget day from 238.15 to 218.85 and is trading with negative bias since then. Investor believe this proposed increase in NCCD will hamper ITC Ltd’s core business i.e cigarette volume growth and revenues.
Long term investor should start accumulating stock between 170-182 level. In FY 2019 , 60 % revenue was from non cigarette business.