Concerns around ITC's cigarettes biz easing a bit

ITC's latest December quarter results were dampened by demonetisation particularly the FMCG business

A stake sale by the government-owned SUUTI fired up the ITC scrip, which made a new all-time high of Rs 291.95 a piece in Tuesday’s trade. In fact, the stock has had a healthy run in the past one month on the back of multiple positive news flow. First, the increase in excise duty on cigarettes in the Union Budget was much below Street expectations and will enable the cigarette-maker to implement price hikes without hurting volumes much. Second, the duties on competing products such as bidis were increased by a much bigger margin.
 

This could accelerate