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ITC share price target cut by CLSA on tax uncertainties; Kotak sees rising competitionKotak said that ITC, the market and price leader, waited for Godfrey Phillips India to announce a price hike in Marlboro Compact before matching it. This, according to the brokerage, underscores heightened competition in the RSFT segment and signals ITC's increasing sensitivity to market share losses to Marlboro.By Meghna Sen  February 24, 2026, 9:06:13 AM IST (Published)2 Min ReadShares of ITC Ltd. will be in focus in Tuesday's trade after brokerage firm CLSA maintained its 'Outperform' rating on the stock but trimmed its price target by 24% to ₹367 from ₹485 earlier.

The revised target implies a potential upside of 13% from the current level.

The foreign brokerage said in its note that indirect taxes on cigarettes increased sharply in February 2026, following the replacement of the compensation cess with GST and higher excise duties.

The brokerage estimates ITC would need to raise cigarette prices by about 33% to remain neutral on EBIT per cigarette. Such steep hikes, however, could weigh on volumes and drag the cigarette division's EBIT in FY27.

CLSA expects a recovery in FY28, assuming no further tax increases, citing ITC's historical track record of passing on tax hikes, last seen during FY14 to FY16. The brokerage has cut its earnings estimates by 4% to 28%.

Meanwhile, Kotak Institutional Equities has a 'Reduce' rating on the stock with a price target of ₹338.

Kotak said that ITC's blended 25% price hike on cigarettes, well below the 35% required to fully offset the tax increase, could lead to a 30% to 33% near-term decline in cigarette EBIT.

It said this reflects a deliberate trade-off, with the company prioritising volume protection over profitability through staggered price increases.

More importantly, Kotak said that ITC, the market and price leader, waited for Godfrey Phillips India to announce a price hike in Marlboro Compact before matching it.

This, according to the brokerage, underscores heightened competition in the RSFT segment and signals ITC's increasing sensitivity to market share losses to Marlboro.

Of the 39 analysts covering ITC, 15 have a 'Buy' rating, nine recommend 'Sell', and 15 have a 'Hold' rating.

Shares of ITC ended 0.41% lower on Monday at ₹325.65. The stock is down 11% so far in 2026.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.TagsITCITC share priceITC shares