Analysts remain cautious on ITC after a sharp cigarette excise duty hike, warning of price increases, volume decline, and pressure on valuation due to a shift in policy stance. While some support may come from ITC’s non-cigarette businesses, the stock is expected to remain under pressure. In contrast, the Devyani International–Sapphire Foods merger is being seen as supportive for the QSR sector, with expectations of cost synergies, improved execution, and a recovery in discretionary consumption.
