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ITC rallies 19% in four days

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ITC jumped 8.03% to Rs 174.95, extending its winning streak to fourth consecutive session.

The tobacco manufacturer has gained 18.85% in last four trading days from its previous closing low of Rs 147.20 posted on 16 March 2020. The stock is still down 50.44% from its record high level of Rs 353.02 registered on 3 July 2017.

The World Health Organization (WHO) declared COVID-19 a global pandemic on 11 March 2020 as the new coronavirus has rapidly spread to more than 219,548 people from Asia to the Middle East, Europe and the United States. The uncertainty regarding the effect of the coronavirus epidemic impacted investor's sentiment across the global stock markets.

Earlier this week, ITC said it will offer higher dividend payouts for the ongoing financial year. The company said it will strive to maintain a steady stream of dividend to its shareholders. Dividend distribution shall take into account the financial performance, cash flow and liquidity position of the company and the distributable surplus available under law.

Consistent with the above, effective financial year 2019-20, in the medium term, the dividend pay-out ratio is expected to be around 80% to 85% of the profit after tax of the company.

According to a company notice on updated dividend distribution policy available on its website, the board may declare interim dividend at its discretion. The final dividend may include special dividend as recommended by the board. The new policy can be amended and reviewed as and when required by the board.

This policy was approved by the board on 18 March 2020 in supersession of the earlier policy adopted on 27 January 2017.

ITC is the market leader in cigarettes in India. ITC's wide range of brands, includes Insignia, India Kings, Classic, Gold Flake, American Club, Navy Cut, Players, Scissors, Capstan, Berkeley, Bristol, Flake, Silk Cut, Duke & Royal.

The company also has presence in branded packaged foods, personal care, education and stationery, agarbattis & safety matches, lifestyle retailing, hotels, paperboards & specialty papers, packaging, agri-business & IT.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, March 20 2020. 15:03 IST