The stocks of cigarette manufacturing companies are trading higher after reports of a price hike next month. While ITC was trading over 3.8 percent higher on the bourses, Godfrey Phillips was hovering higher with a gain of almost 8 percent.The stock of ITC opened almost flat on Wednesday at Rs 305.10 compared to the previous close of Rs 304.45 apiece.However, the scrip climbed to Rs 317.50, up over 4.2 percent during the trade on reports of a price hike.Replacing the stock of Maruti Suzuki, the stock of Gold Flake’s manufacturer was at the top spot among the Nifty 50 gainers on Wednesday.
During afternoon trade, the Nifty FMCG index was trading 2 percent higher, with ITC leading the gains.
The stock of Godfrey Phillips opened about 1 percent higher at Rs 2,138.50 compared to the previous close of Rs 2,115.95 apiece.While it traded at moderate levels till noon, the stock jumped by almost 8 percent to Rs 2,298 apiece.According to reports, ITC and Godfrey Phillips are planning to raise cigarette prices by up to 17 percent.ITC is the largest cigarette manufacturing company in India, holding over 73 percent of the market share.ITC’s key brands include Gold Flake, Classic, Wills Navy Cut, India Kings, Insignia, Scissors, Capstan, Berkeley, Bristol, Flake, Silk Cut, Players, and Duke & Royal.Cigarette brands like Four Square, Red & White, Cavanders, and Stellar are manufactured by Godfrey Phillips.For ITC, Gold Flake Premium is expected to see its pack price rise from Rs 115 to about Rs 135 in May.Earlier this year, Parliament approved the Central Excise (Amendment) Bill, 2025, clearing the way for a sharp increase in duties on cigarettes and other tobacco products.The latest price hike is being considered after cigarette sales weakened in April due to the excise duty hike.