ITC hit by 6 brokerage downgrades as cigarette tax hike darkens earnings outlook. Should you buy, sell or hold?

Brokerages have turned sharply cautious on ITC after the government’s steep hike in cigarette excise duties, triggering downgrades, earnings cuts and valuation resets. While domestic brokerages warn of volume pressure and a revival of illicit trade, Jefferies has retained a Buy rating, arguing that long-term returns and cash payouts could cushion near-term pain.