ITC drops on reports Uttar Pradesh FDA finds excessive lead in Yippee Noodles

ITC declined 3.09% to Rs 320.60 at 14:15 IST on BSE on reports that the Uttar Pradesh Food and Drug Authority will soon file a case against the company after it found lead far in excess than permissible limit in its Yippee Noodles.

Meanwhile, the BSE Sensex was down 1,235.43 points, or 4.51%, to 26,130.64.

On BSE, so far 4.04 lakh shares were traded in the counter, compared with an average volume of 4.75 lakh shares in the past one quarter.

The stock hit a high of Rs 329.20 and a low of Rs 315.85 so far during the day. The stock hit a record high of Rs 409.70 on 28 February 2015. The stock hit a 52-week low of Rs 294.50 on 15 June 2015.

The stock had outperformed the market over the past one month till 21 August 2015, rising 5.16% compared with 2.9% fall in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 0.78% as against Sensex's 1.59% decline.

The large-cap cigarette maker has an equity capital of Rs 802.09 crore. Face value per share is Re 1.

According to recent media reports, laboratory tests on a sample of Yippee noodles seized from a local mall in Aligarh have found higher than permitted lead levels. The laboratory test report has been sent to the FDA Chief Commissioner for permission before filing an official case, according to reports. The process is expected to take a few weeks, reports added.

ITC's net profit rose 3.6% to Rs 2265.44 crore on 6.1% decline in total income to Rs 8902.71 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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