Shares of ITC, a major player in the fast-moving consumer goods (FMCG) sector, fell nearly 3% to a new 52-week low of ₹275.50 on the National Stock Exchange on Wednesday. This decline follows significant tax hikes on cigarettes, with Motilal Oswal Financial Services expressing concerns about the stock's future. The brokerage highlighted a 60-65% increase in cigarette taxes due to the implementation of GST 2.0, necessitating a 35% increase in maximum retail prices (MRPs) to maintain profitability. ITC's strategy involves gradual price hikes to avoid a shift to illicit markets. Analysts predict a challenging transition period, with expectations of a 15% revenue decline and a 19% dip in earnings before interest and taxes (EBIT) for FY27. Despite the struggles in the cigarette segment, ITC's non-cigarette business is reportedly improving, with FMCG performance seen as a potential growth driver. However, the overall outlook remains uncertain as the company navigates the impact of tax hikes and competition from illegal cigarettes.