ITC drops on fears of likely ban on sale of loose cigarettes by govt

ITC lost 5.57% to Rs 353.60 at 14:49 IST on BSE after the Health Ministry accepted the recommendations of the Committee constituted by Ministry of Health & Family Welfare prohibiting on sale of loose or single stick of cigarette.

Meanwhile, the S&P BSE Sensex was down 206.60 points or 0.72% at 28,292.94

On BSE, so far 9.31 lakh shares were traded in the counter as against average daily volume of 3.75 lakh shares in the past one quarter.

The stock was volatile. The stock hit a high of Rs 378.80 and a low of Rs 348.60 so far during the day. The stock had hit a record high of Rs 386.75 on 16 May 2014. The stock had hit a 52-week low of Rs 307.80 on 5 December 2013.

The stock had outperformed the market over the past one month till 24 November 2014, advancing 6.82% compared with Sensex's 6.14% rise. The scrip had also outperformed the market in past one quarter, surging 8.93% as against Sensex's 7.87% rise.

The large-cap company has equity capital of Rs 798.68 crore. Face value per share is Re 1.

Health Minister J P Nadda stated in a written reply in the Rajya Sabha today, 25 November 2014, the Ministry of Health & Family Welfare has accepted recommendations of a committee that has suggested prohibition on sale of loose or single stick of cigarettes, increasing the minimum legal age for sale of tobacco products, increasing the fine or penalty amounts for violation of certain provisions of the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 (COTPA), as well as making such offences cognizable. In this regard, a draft note for Cabinet has been circulated for Inter-Ministerial consultation.

IT reported 8.7% rise in net profit to Rs 2425.16 crore on 15.7% growth in total income to Rs 9379.96 crore in Q2 September 2014 over Q2 September 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.

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