ITC rose 1.74% to Rs 350.45 at 14:25 IST on BSE, with the stock extending recent gains triggered by the Uttar Pradesh state government slashing the value added tax on cigarettes to 25% from 50% recently.
Meanwhile, the S&P BSE Sensex was up 120.58 points or 0.6% at 20,059.62.
On BSE, 2.86 lakh shares were traded in the counter as against average daily volume of 3.37 lakh shares in the past one quarter.
The stock hit a high of Rs 351 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 342.10 so far during the day. The stock had hit a 52-week low of Rs 225 on 5 June 2012.
The stock had outperformed the market over the past one month till 9 May 2013, surging 19.95% compared with the Sensex's 9.4% rally. The scrip had also outperformed the market in past one quarter, jumping 14.19% as against Sensex's 2.33% rise.
India's largest cigarette maker by sales has equity capital of Rs 790.18 crore. Face value per share is Re 1.
The Uttar Pradesh state government on Tuesday, 7 May 2013, slashed the value added tax (VAT) on cigarette/cigar from existing 50% to 25%. The state government had last year increased VAT on cigarette/cigar and tobacco products sharply from 12.5% to 50%.
The Centre raised the excise duty on cigarettes by about 18% on all cigarettes except cigarettes of length not exceeding 65 mm in Union Budget 2013-14.
ITC's net profit rose 20.6% to Rs 2051.85 crore on 23.1% growth in net sales to Rs 7627.07 crore in Q3 December 2012 over Q3 December 2011. The company unveils FY 2013 results on 17 May 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, safety matches and other FMCG products. ITC is a market leader in cigarettes.
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