ITC declined 1.03% to Rs 313.65 at 15:00 IST on BSE after reports that the Supreme Court today, 4 May 2016, told the tobacco industry to adhere to rules requiring stringent health warnings on cigarette packs.
Meanwhile, the BSE Sensex was down 83.44 points, or 0.32%, to 25,146.26.
On BSE, so far 2.13 lakh shares were traded in the counter, compared with an average volume of 6.7 lakh shares in the past one quarter. The stock hit a high of Rs 319.35 and a low of Rs 312.80 so far during the day. The stock hit a 52-week high of Rs 359.75 on 26 October 2015. The stock hit a 52-week low of Rs 268 on 29 February 2016. The stock had underperformed the market over the past one month till 3 May 2016, falling 5.68% compared with the Sensex's 0.16% fall. The scrip had also underperformed the market in past one quarter, dropping 1.42% as against Sensex's 4.15% gains.
The large-cap cigarette major has an equity capital of Rs 804.72 crore. Face value per share is Re 1.
The tobacco industry should not violate any rule prevailing as of today, the two-judge bench reportedly said, and added that the Karnataka high court should hear all pleas challenging the new rules. Last month, Indian tobacco companies shut down production in protest against requirements that 85% of a cigarette pack's surface be covered in health warnings, up from 20%. The tobacco industry has taken the government to court, saying the rules are impractical and will boost smuggling of imported cigarettes. The government backs the stringent rules to cut tobacco consumption.
ITC's net profit rose 0.7% to Rs 2652.82 crore on 3.4% growth in net sales to Rs 9102.66 crore in Q3 December 2015 over Q3 December 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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