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Shares of cigarette manufacturers ITC, Godfrey Phillips India and VST Industries surged up to 11% on Wednesday, February 18, extending their winning run amid reports of price hikes.

Several media reports stated that price hikes have been taken by these companies to offset the impact of the excise duty increase.

ITC share price gained for the third day in a row, rising 1% to ₹329.95 today and 5% in the three days, including today's gain. Meanwhile, Godfrey Phillips shares rallied over 11% to ₹2,297.70, taking its two-day gain to 14%. Another cigarette manufacturer VST Industries' share price rose 3% in trade today.

Last month, cigarette manufacturers declined 9%–26% after the government’s sharp increase in excise duty at the beginning of 2026 raised concerns about margins and volumes.

A report by NDTV Profit, quoting analysts at B&K Securities and InCred, stated that ITC has sharply raised the prices for its cigarettes across some categories to negate the impact of the excise duty hike on its operating income.

More to come…Saloni Goel is a business journalist with over 7 years of expertise in covering the stock market and mutual funds. She has extensively written on fina...

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