0402 GMT - ITC Ltd. faces rising risks in its cigarette business, Nomura analysts say in a research report. India may raise some taxes on cigarettes at the upcoming budget after having left them unchanged for several years, partly due to improved cigarette sales volumes, the analysts say. The price of the Indian conglomerate's cigarette brand "Gold Flake Premium" with regular-size filters could rise above INR10 per cigarette, which may spur a shift to lower-priced cigarettes and lead to lower EBIT growth, the analysts say. Nomura initiates coverage of the stock with a neutral rating and a target price of INR360.00. The shares are 0.3% lower at INR328.60. (ronnie.harui@wsj.com)

(END) Dow Jones Newswires

January 12, 2023 23:02 ET (04:02 GMT)

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