It believes its rating on the stock is warranted due to heightened regulatory risk and the unprecedented magnitude of excise hike. This is coupled with an already declining industry volume and longer term risk from rapid growth of vape users, it added in a note on Wednesday.
It also believes that with the cabinet deciding not to ban vaping, the pressures would be compounded further given that tobacco players now face two major competitors for nicotine consumption compared to one previously.
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