ITC drops on buzz of tougher anti-tobacco laws

ITC lost 2.59% to Rs 347.50 at 11:37 IST on BSE on reports the Centre is planning to introduce tougher provisions under law to curb tobacco consumption in the country.

Meanwhile, the S&P BSE Sensex was up 118.11 points or 0.45% at 26,221.34.

On BSE, so far 1.43 lakh shares were traded in the counter as against average daily volume of 6.58 lakh shares in the past one quarter.

The stock hit a high of Rs 356.40 and a low of Rs 346.90 so far during the day. The stock had hit a 52-week low of Rs 285.40 on 28 August 2013. The stock had hit a record high of Rs 386.75 on 16 May 2014.

The stock had underperformed the market over the past one month till 14 August 2014, advancing 3.38% compared with Sensex's 4.38% rise. The scrip had also underperformed the market in past one quarter, sliding 2.43% as against Sensex's 9.61% rise.

The large-cap company has equity capital of Rs 796.16 crore. Face value per share is Re 1.

According to reports, the Union Health Minister Harsh Vardhan constituted a committee of experts last month to review and suggest changes to the Cigarettes and Other Tobacco Products Act 2003 (COTPA), and it is expected to submit its report by the end of this month. From banning branding on cigarette packets to raising the age limit on tobacco consumption to 25 years from 18, to substantively increasing penalties for smoking in public, the Union Health Ministry is considering a host of amendments to the anti-tobacco law, the reports added.

The Centre had already hiked tax on cigarettes in its Union Budget 2014-15.

ITC's net profit rose 15.6% to Rs 2186.39 crore on 24.9% growth in net sales to Rs 9164.42 crore in Q1 June 2014 over Q1 June 2013.

ITC has a diversified 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