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The brokerage downgraded ITC from Buy to Neutral and cut its target price to Rs 400.The magnitude of the tax increase is staggering, analysts said, noting that to fully offset the levy, ITC may need to raise prices by as much as 40%, assuming no change in product mix.Jefferies, which downgraded the stock from Buy to Hold, warned that if the company passes on the full impact through price hikes, the effective tax burden could rise to nearly 70%, pushing tobacco taxes per stick from about 55% to 65% of the maximum retail price

To become a licensed tobacco products manufacturer, wholesaler, or retailer in Maryland, you must apply for the appropriate licenses from the ATCC, depending on whether youre involved in manufacturing, distributing, or wholesaling