Cigarette and Tobacco Stocks ITC and Godfrey Philips in Focus as Government Considers Higher GST

According to a news report, the government is considering increasing the Goods and Services Tax (GST) on cigarettes and other tobacco products. This change could be implemented once the current compensation cess is phased out in March 2026. The move is aimed at ensuring tax revenues from tobacco products remain stable despite the removal of the cess.

Currently, cigarettes and other tobacco products attract a GST of 28%, along with additional levies, taking the total tax burden to 53%. However, discussions are underway to raise GST to 40%, which is the highest permissible slab, and introduce an excise duty on top of it.

Why the Government is Reviewing Tobacco Taxation

Tobacco products are classified as “sin goods” and are heavily taxed to discourage consumption. The World Health Organization (WHO) recommends a tax rate of 75%, whereas India currently imposes a 53% tax on cigarettes. Despite this, tobacco and tobacco products contribute significantly to government revenue. In 2022-23, they generated ₹72,788 crore in tax earnings.

A ministerial panel under the GST Council is reviewing various options for restructuring taxation on tobacco products. The panel is expected to submit recommendations before a final decision is made.

Possible Taxation Models Under Consideration

Several taxation options are being explored, including:

  1. Raising GST to 40% and adding an excise duty to sustain government revenue.
  2. Replacing the compensation cess with a health cess, though some states and central government officials have expressed reservations.
  3. Linking the cess to the maximum retail price (MRP) instead of sales value, as suggested by the Group of Ministers (GoM) set up earlier to review tobacco taxation.
  4. Merging the cess with the existing tax slab to streamline the tax structure.

The compensation cess on tobacco products currently stands at 5%, along with a specific levy ranging from ₹2,076 to ₹4,170 per 1,000 cigarettes, depending on their length, filter, and flavour. The GoM had previously recommended modifying the cess structure, but the proposal was referred to a fitment committee for further evaluation.

Impact on Cigarette and Tobacco Stocks

With the possibility of increased taxation, cigarette and tobacco stocks such as ITC Ltd and Godfrey Phillips India Ltd have come under investor focus. Any increase in tax rates could impact their profit margins and consumer pricing strategies. However, these companies have historically managed to pass on tax hikes to consumers without significantly affecting demand.

Final Decision Rests with the GST Council

The final decision on increasing GST or introducing an excise duty will be taken after the ministerial panel submits its recommendations. The government aims to balance public health concerns with revenue generation, ensuring that tax collections from tobacco products remain robust even after the compensation cess is phased out.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Delhi CM Rekha Gupta Announces ₹2,500 Per Month Aid for Women: Know When You’ll Receive the First Payment

Delhi’s newly elected Chief Minister, Rekha Gupta, has assured that the Bharatiya Janata Party (BJP) government will fulfil its election promise of providing ₹2,500 per month to women, according to news reports. This announcement positions Delhi’s financial assistance scheme ahead of similar initiatives in other states, such as Maharashtra’s Ladki Bahin Yojana and Madhya Pradesh’s Ladli Behna Yojana.

The first installment of this financial aid will be deposited into beneficiaries’ accounts by March 8, aligning with International Women’s Day, as per news reports. Gupta reaffirmed that her government is committed to delivering on its pledges, stating, “Women will 100 per cent get monetary support into their accounts by March 8.”

BJP’s Scheme vs AAP’s Initiative

This initiative is a direct counter to the Aam Aadmi Party’s (AAP) earlier Mahila Samman Yojana, which initially provided ₹1,000 per month to eligible women above 18 years of age, with a planned increase to ₹2,100. By announcing ₹2,500 per month, the BJP government has surpassed AAP’s proposal, reinforcing its commitment to women’s financial empowerment.

Delhi joins the list of BJP-ruled states offering financial assistance to women. Madhya Pradesh runs the Ladli Behna Yojana, while Maharashtra’s Ladki Bahin Yojana provides direct cash transfers to women. Gupta’s scheme, however, now offers the highest financial support among these programmes.

A Resounding BJP Victory in Delhi Elections

The announcement comes on the heels of the BJP’s sweeping win in the Delhi Assembly elections, where it secured 48 out of 70 seats, ending AAP’s decade-long governance. The party’s manifesto had prominently featured this financial assistance plan, which played a crucial role in its electoral success.

Rekha Gupta, a former Delhi University Students’ Union (DUSU) president and municipal councillor, was elected as the leader of the BJP legislature party on Wednesday. She reiterated that fulfilling poll promises is the government’s foremost priority. “Fulfilling the dream of Prime Minister Narendra Modi is the responsibility of all 48 BJP MLAs in the capital,” she added.

Swearing-in Ceremony at Ramlila Maidan

Rekha Gupta is set to take oath as the fourth woman Chief Minister of Delhi at a grand ceremony at Ramlila Maidan later today. The event will be attended by Prime Minister Narendra Modi, senior BJP leaders, and chief ministers from various BJP-ruled states.

To ensure security, the Delhi Police have deployed over 25,000 personnel across the city, alongside 15 paramilitary companies. These measures aim to maintain order as a large gathering of political dignitaries and citizens is expected.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

India and Argentina Strengthen Partnership for Lithium Exploration

In a significant move to strengthen India’s mineral supply chain, the country has entered into a formal partnership with Argentina to boost cooperation in lithium exploration and development. Given Argentina’s vast lithium reserves, this collaboration is crucial for India’s push towards clean energy and electric mobility. 

The agreement underscores India’s commitment to securing critical raw materials necessary for its growing energy needs.

India and Argentina Sign MoU for Lithium Exploration

India and Argentina have taken a significant step in strengthening their collaboration in the mining sector, particularly in lithium exploration and development. On 19 February, a Memorandum of Understanding (MoU) was signed between Mineral Exploration and Consultancy Limited (MECL), a PSU under India’s Ministry of Mines, and the Provincial Government of Catamarca, Argentina. The agreement was formalised in the presence of Union Minister for Coal and Mines G Kishan Reddy and Catamarca Governor Raúl Alejandro Jalil.

The MoU focuses on expanding investment opportunities and fostering joint efforts in critical mineral resource development. Argentina, known for its substantial lithium reserves, is a key strategic partner for India in securing raw materials essential for electric vehicle batteries and renewable energy storage. The discussions also covered lithium exploration initiatives led by Khanij Bidesh India Ltd (KABIL) and Greenko in the Catamarca region.

Expanding Indian Participation in Argentina’s Mining Sector

As part of the agreement, senior officials from both nations deliberated on policy frameworks, regulatory measures, and sustainable mining practices. They explored opportunities for Indian companies to increase participation in Argentina’s mining sector through investments, long-term supply agreements, and joint ventures.

The discussions highlighted the importance of knowledge exchange, infrastructure development, and technology transfer to facilitate India’s engagement in Argentina’s mineral industry. Additionally, both nations emphasised the need for sustainable and ethical mining practices to ensure a responsible approach to resource extraction.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Orchid Pharma’s Alathur API Facility Passes USFDA Inspection

Orchid Pharma Ltd. has once again demonstrated its commitment to regulatory excellence by successfully completing a surprise inspection by the USFDA. This milestone not only cements its leadership in sterile cephalosporin production but also strengthens its global credibility.

Successful USFDA Inspection with No Major Issues

Orchid Pharma Ltd. has announced the successful completion of a surprise inspection by the U.S. Food and Drug Administration (USFDA) at its Active Pharmaceutical Ingredient (API) manufacturing facility in Alathur, Tamil Nadu.

The inspection, conducted between 10 and 18 February 2025, resulted in seven minor observations, none of which were related to data integrity concerns.

This development ensures that Orchid Pharma maintains its exclusive position as India’s only USFDA-approved manufacturing site for sterile cephalosporins. The facility plays a crucial role in the production of life-saving antibiotics, reinforcing the company’s global standing in the pharmaceutical industry.

Continued Global Compliance and Certification

Beyond the USFDA approval, the Alathur API facility has also secured the renewal of its European Union Good Manufacturing Practice (EU GMP) certification. This further validates Orchid Pharma’s commitment to stringent European regulatory standards, enabling the company to continue serving key international markets.

Commenting on the achievement, Manish Dhanuka, Managing Director of Orchid Pharma, stated, “The successful completion of the USFDA inspection underscores our unwavering commitment to quality, compliance, and global regulatory standards. Our teams have consistently worked towards upholding the highest manufacturing practices, ensuring the continued supply of world-class antibiotics.”

Orchid Pharma Share Performance

As of February 20, 2025, at 12:43 PM, the shares of Orchid Pharma are locked in an upper circuit at ₹874.55 per share, reflecting a surge of 5% from the previous day’s closing price.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Sundaram Clayton to Sell Hosur Aluminium Die-casting Business

Sundaram-Clayton Ltd, a leading automotive components manufacturer, announced today that its Board of Directors has approved the sale of its aluminium die-casting businesses at the Hosur plant to third-party purchasers. The decision was made during a board meeting held on February 19.

Divestment Of Plant

According to the company’s disclosure to stock exchanges, both high-pressure and low-pressure aluminium die-casting operations at the Hosur facility will be divested. However, key details of the transaction remain undetermined, including the final structure of the deal, the identity of the potential buyer and sale consideration.

Aluminium die-casting is a manufacturing process where molten aluminium is forced under high pressure into reusable steel moulds (called dies) to create precisely shaped metal components. This process is widely used in the automotive, aerospace, and consumer electronics industries.

The company possesses expertise in both high-pressure die-casting, ideal for complex, large-scale production, and low-pressure die-casting, which excels in producing structurally sound components with enhanced mechanical properties

About Company


The Chennai-based company, formerly known as Sundaram-Clayton DCD Limited, informed the BSE Limited and National Stock Exchange of India that it will make further disclosures upon execution of definitive agreements. The company noted that the completion of any transaction will be subject to regulatory approvals and other required permissions.

Effective June 16, Sundaram Clayton Ltd. (SCL) has undergone a name change. This change is the result of the merger between TVS Holdings Pvt. Ltd. and SCL. Following the merger, TVSH now serves as the promoter of TVS Motor Co., holding a 50.26% stake.

Share Price Performance

At 10:26 AM on February 20, 2025, Sundaram-Clayton Ltd shares traded at ₹2,445.25 per share on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

JBM Auto Arm Bags ₹5,500 Cr Order Under PM eBus Sewa Phase II

JBM Auto Limited, established in 1983, is the flagship enterprise of the esteemed $3.0 billion JBM Group. The company excels in manufacturing high-precision sheet metal components, tools, dies, moulds, and state-of-the-art buses, including cutting-edge electric vehicles (EVs). 

Secured ₹5,500-Crore Contract

A significant milestone has been achieved by its subsidiary, JBM Ecolife Mobility, which has secured a monumental ₹5,500-crore contract under the PM eBus Sewa Scheme-II.

In a regulatory filing, the company disclosed that JBM Ecolife Mobility had triumphed in a competitive tender to function as a bus operator for the procurement, supply, operation, and maintenance of 1,021 electric buses. The ambitious project further encompasses the development of essential electric and civil infrastructure under the Gross Cost Contracting (GCC) model.

This landmark contract further fortifies JBM Auto’s stature in India’s burgeoning electric mobility landscape, aligning seamlessly with the government’s ambitious agenda for sustainable public transport.

JBM Auto Q3 FY25 Results

JBM Auto Limited has unveiled its consolidated financial results for Q3 FY25, reporting a net profit of ₹52 crore—an 8% increase from ₹49 crore in the corresponding period last year. Total sales, inclusive of other operating income, advanced by 4% to ₹1,396 crore, compared to ₹1,346 crore in the prior year’s equivalent quarter. Additionally, the Board of Directors has sanctioned a sub-division of existing equity shares from a face value of ₹2 each to ₹1 each—a strategic move that has garnered shareholder approval.

Share Price Performance 

At 1:26 PM On February 20, 2025, JBM Auto Ltd shares trading at ₹619.40 per share a 4.35% down on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Gold Prices Hit Fresh All-Time High; Check Gold and Silver Prices in Your City on Feb 20

On February 20, 2025, gold prices hit a fresh all-time high. In the international market, the spot gold price has increased by nearly 1% to $2,947.93 per ounce as of 12:33 PM.

In India, gold prices increased on February 20, 2025, by nearly ₹500 per 10 grams in major cities.

In Mumbai, 24-carat gold is priced at ₹8,644 per gram. Similarly, 22-carat gold now costs ₹7,924 per gram. The 24-carat gold price is ₹86,440 per 10 grams as of 12:33 PM on 19 February 2025.

In Delhi, the price of 22-carat gold is currently ₹79,099 per 10 grams, while 24-carat gold is trading at ₹86,290 per 10 grams.

Gold Prices Across Major Indian Cities on February 20, 2025

Here is a detailed breakdown of gold prices as of February 20, 2025:

City 24 Carat Gold (per 10gm in ₹) 22 Carat Gold (per 10gm in ₹)
Chennai 86,690 79, 466
Hyderabad 86,580 79,365
Delhi 86,290 79,099
Mumbai 86,440 79,237
Bangalore 86,510 79,301

 

Silver Prices in India on February 20, 2025

The international silver price has increased by over 1% to $32.91 as of 12:33 PM on February 20, 2025. In India, silver prices have increased by ₹610 per kg.

Silver Prices Across Major Indian Cities

City Silver Rate in ₹/KG 
Mumbai 97,300
Delhi 97,130
Kolkata 97,170
Chennai 97,580

Key Takeaways

  • Gold Prices: Both 22-carat and 24-carat gold prices have increased in major Indian cities. The international spot gold price is trading at a fresh all-time high, rising nearly 1%.
  • Silver Prices: Silver prices have increased in both the international and domestic markets.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Insurance Premium Payments Made Easier with UPI-OTM & Bima-ASBA from March 1, 2025

The Insurance Regulatory and Development Authority of India (IRDAI) has introduced a significant change in the way policyholders can pay their insurance premiums. Under the new facility called Bima Applications Supported by Blocked Amount (Bima-ASBA), customers can now ‘block’ the required premium amount in their bank accounts. This amount is deducted only when the policy is issued or the premium becomes due.

This mechanism mirrors the Application Supported by Blocked Amount (ASBA) process used for Initial Public Offerings (IPOs), where funds remain in the account but are debited only after share allocation.

How Bima-ASBA Works

Under the Bima-ASBA facility, policyholders can ensure that their premium amount remains available in their bank account but is not deducted immediately. The key features include:

  • Blocking of funds: The required premium amount is earmarked in the customer’s bank account.
  • Automatic deduction: The amount is debited only after the insurance company accepts the policy proposal and issues the policy.
  • Enhanced transparency: Customers are informed about the policy approval before any payment deduction takes place.

This feature ensures that policyholders maintain better control over their funds while ensuring timely premium payments.

UPI-OTM for Seamless Payments

To further simplify premium payments, IRDAI has also enabled insurers to use the Unified Payments Interface – One Time Mandate (UPI-OTM). This facility allows customers to authorise fund blocking for specific transactions without immediate debit. Some key benefits include:

  • Convenient payment processing – Funds remain in the account until needed.
  • Eliminates the need for manual transactions – The process becomes seamless and automated.
  • Greater financial flexibility – Customers can manage their cash flow more efficiently without worrying about immediate debits.

Mandatory Implementation by March 1

IRDAI has directed all life and health insurers to implement Bima-ASBA by March 1, 2025. Additionally, insurers must:

  • Partner with multiple banks to ensure smooth execution.
  • Provide an option in the proposal form where customers can authorise the blocking of funds.
  • Include a standard declaration in the proposal form, as prescribed by Life and General Insurance Councils, within a week of the circular’s issuance.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

TCS Collaborates with Salesforce to Enhance AI-Driven Solutions for Manufacturing and Semiconductor Industries

Tata Consultancy Services (TCS) has announced a new collaboration with Salesforce to deliver AI-driven solutions tailored for the manufacturing and semiconductor industries. The partnership aims to unlock data-driven insights, streamline operations, and elevate customer engagement.

The TCS share price was down by 0.16% as of 12:08 PM on February 20, 2025.

TCS has introduced three key initiatives as part of this collaboration:

  • Semiconductor Sales Accelerator – Enhancing sales efficiency with AI-driven insights.
  • Seller for the Future – Providing predictive analytics and real-time customer insights.
  • Digital Field Service – Optimising field operations with AI and IoT integration.

Addressing Industry Challenges with AI

One of the major challenges manufacturers and semiconductor firms face is managing and extracting value from vast amounts of unstructured data. By leveraging TCS’ industry expertise and Salesforce’s AI-powered CRM solutions, this collaboration seeks to transform how businesses interact with data to improve sales, service, and operational efficiency.

Indira Gillingham, Vice President of Alliances at Salesforce, highlighted the importance of this partnership, stating that integrating Salesforce Data Cloud with TCS’ industry-specific solutions will empower businesses with AI-driven insights.

AI-Powered Solutions for the Semiconductor Industry

TCS’ Semiconductor Sales Accelerator is designed to simplify complex data navigation for sales teams, providing faster access to critical insights. This solution integrates TCS’ expertise in semiconductor design, manufacturing, and advanced packaging with Salesforce’s AI and cloud capabilities.

By leveraging this platform, organisations can reduce their sales cycle, improve customer interactions, and enhance decision-making through AI-powered recommendations.

Empowering Sales Teams with Real-Time Insights

TCS’ Seller for the Future initiative equips sales teams with a comprehensive 360-degree view of customer data. This AI-driven solution provides real-time insights, predictive analytics, and personalised recommendations, enabling sales teams to:

  • Identify cross-selling and upselling opportunities.
  • Reduce deal cycle times.
  • Improve sales productivity.

By automating routine tasks, this initiative allows sales professionals to focus on strategic customer engagement, ultimately enhancing sales effectiveness.

Transforming Field Operations with AI and IoT

The Digital Field Service initiative integrates AI, the Internet of Things (IoT), and machine learning to enhance field service operations. This solution equips technicians with:

  • Real-time data and predictive maintenance insights.
  • AI-driven scheduling optimisation.
  • Remote diagnostic capabilities.

These enhancements aim to reduce downtime, minimise maintenance costs, and improve 1st time fix rates, leading to better overall customer satisfaction.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

FMCG Sector Bleeds: Over ₹2.5 Lakh Crore Wiped Out Amid Record Losing Streak

The Indian FMCG sector is witnessing one of its longest losing streaks, with the Nifty FMCG index declining for the 14th consecutive session on February 20, 2025. This persistent downturn has resulted in a massive ₹2.7 lakh crore erosion in investor wealth, highlighting the sector’s struggles post the initial optimism following the Union Budget announcements.

Despite a brief rally after personal income tax changes, concerns over weak consumer demand and margin pressures have once again taken centre stage, dragging down FMCG stocks.

Index Slumps by 11% in 14 Days

Since February 3, the Nifty FMCG index has plummeted 11%, reflecting the severity of the downturn. Several frontline FMCG companies have been hit hard, witnessing significant market capitalisation erosion.

  • ITC Ltd. suffered the steepest decline, losing ₹77,600 crore in market value over the past 14 sessions.
  • Hindustan Unilever Ltd. (HUL) saw its market capitalisation shrink by ₹64,500 crore, bringing its valuation down to ₹5.2 lakh crore.
  • Nestlé India and Varun Beverages lost ₹12,400 crore and ₹30,000 crore, respectively.

Steep Declines Across FMCG Stocks

Among the Nifty FMCG constituents, several stocks have been battered by this relentless sell-off:

The decline is not just limited to heavyweight stocks, as the broader FMCG index remains under pressure.

Smaller Players Outperform FMCG Giants

Interestingly, as per a news report, while large FMCG companies are struggling, smaller players have fared better in terms of volume growth.

  • Smaller FMCG firms saw 8-10% volume growth in the quarter ending December 2024.
  • In contrast, larger FMCG companies reported a much weaker sales volume growth of 0-5% for the same period.

This divergence suggests that consumer preferences may be shifting towards regional and emerging brands, possibly due to pricing and value considerations.

Nifty FMCG Index Down 8.5% YTD

As of February 20, 2025, the Nifty FMCG index has declined over 8.5% on a year-to-date (YTD) basis. The prolonged weakness in the sector raises questions about the sustainability of the recent post-budget rally and highlights the headwinds that FMCG companies continue to face.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.