ITC drops on reports UP bans sale of loose cigarettes

ITC lost 2.48% to Rs 337.70 at 11:37 IST on BSE on media reports that the Uttar Pradesh government has decided to ban the sale of loose cigarette sticks in the state.

Meanwhile, the S&P BSE Sensex was down 196.15 points or 0.73% at 26,839.70.

On BSE, so far 1.96 lakh shares were traded in the counter as against average daily volume of 5.39 lakh shares in the past one quarter.

The stock hit a high of Rs 347 and a low of Rs 337.25 so far during the day. The stock had hit a 52-week low of Rs 294.50 on 15 June 2015. The stock had hit a record high of Rs 409.70 on 28 February 2015.

The stock had outperformed the market over the past one month till 7 October 2015, surging 10.55% compared with Sensex's 8.6% rise. The scrip had also outperformed the market in past one quarter, jumping 9.23% as against Sensex's 4.03% fall.

The large-cap cigarette maker has equity capital of Rs 802.65 crore. Face value per share is Re 1.

Media reports further suggested that Maharashtra is also planning to ban sale of loose cigarettes.

ITC's net profit rose 3.6% to Rs 2265.44 crore on 7.2% decline in net sales to Rs 8505.53 crore in Q1 June 2015 over Q1 June 2014.

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.

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