ITC declines on fears of increase in cess on tobacco

ITC lost 2.65% to Rs 328.25 at 15:10 IST on BSE on reports of likely increase in cess on tobacco.

Meanwhile, the S&P BSE Sensex was up 85.05 points or 0.27% at 32,105.80.

On the BSE, 12.89 lakh shares were traded on the counter so far as against the average daily volumes of 10.64 lakh shares in the past one quarter. The stock had hit a high of Rs 335 and a low of Rs 326.75 so far during the day. The stock had hit a record high of Rs 353.20 on 3 July 2017 and a 52-week low of Rs 222.05 on 26 December 2016.

The stock had outperformed the market over the past one month till 14 July 2017, advancing 12.49% compared with the Sensex's 2.78% rise. The stock had also outperformed the market over the past one quarter, gaining 20.54% as against the Sensex's 8.69% rise. The scrip had also outperformed the market over the past one year, advancing 35.5% as against the Sensex's 14.6% rise.

The large-cap company has equity capital of Rs 1216.18 crore. Face value per share is Rs 1.

According to reports, the Goods and Services Tax (GST) Council is likely to meet today, 17 July 2017, to consider a cess on tobacco. After the rollout of GST, excise duty has automatically been removed on tobacco products. Now only GST and cess are levied on these products. GST and cess combined on cigarettes is currently 6-8% lower than pre-GST regime.

ITC's net profit rose 12.1% to Rs 2669.47 crore on 14% growth in net sales to Rs 11125.54 crore in Q4 March 2017 over Q4 March 2016.

ITC is a diversified company, with presence in cigarettes, hotels, paperboards & specialty papers, packaging, agri-business, packaged foods & confectionery, information technology, branded apparel, personal care, stationery and other FMCG products. ITC is a market leader in cigarettes.

Powered by Capital Market - Live News