off-the-wire

BUZZ-India's ITC hits record high after lower-than-expected cigarette tax hike

Kitco Media
By Reuters
Published:
Updated:
Reuters

** Shares of fast moving consumer goods company ITC rise as much as 6.45% to a record high of 384.70 rupees, after lower-than-expected tax hike on cigarettes in the Union budget
** Government raised the national calamity contingent duty (NCCD) tax on cigarettes by 16%
** This will result in a modest tax hike of 1.5%, according to analysts


** Jefferies terms the tax hike below 2% a 'big relief' for the company
** Kotak Institutional Equities terms the hike 'modest;' adds ITC has 'headroom for price increases to offset higher taxes'
** Brokerage also raises its target price to 400 rupees from 380 rupees
** Nuvama Institutional Equities says tax increase is lower than street expectations, while JM Financial sees scope for re-rating of the stock
** Trading volume is 45.92 mln shares as of 2:07 p.m. IST, quadruple the 30-day avg of 11.43 mln shares
** Of the 36 analysts tracking the company, 32 have 'buy' rating, and four 'hold;' median TP is 400 rupees -Refinitiv (Reporting by Hritam Mukherjee in Bengaluru)

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