Download Unicorn Signals App

Powered By EquityPandit
 Signals, Powered By  EquityPandit
Latest News

ITC Shares Up 9% As No Cess on Cigarettes Was Increased

On Monday, the share of ITC Ltd up 9 per cent, it’s the biggest jump since March 2016, after the GST council meeting did not announce an increase in cess on cigarettes. On BSE the stock touched high of Rs 260.30 and gained as much as 9.3 per cent, its maximum gain since March 2016.
Rivals, Godfrey Phillips India rose 2.5 per cent, VST Industries gained 4.46 per cent and Golden Tobacco advanced 4.3 per cent.
The government has banned e-cigarettes amid growing fears over the health risks posed by vaping on 9th September. On Wednesday, the government made the manufacture, import, sale, distribution and advertisement of electronic cigarettes a cognizable offence. India ban is also positive for ITC as e-cigarettes would potentially have resulted in a loss of market share in the medium term, according to Jefferies.
Given the sharp de-rating in line with global tobacco companies over the past couple of years and “the stock trading below 1 std dev valuation, the risk-reward seems attractive given an earnings boost of 12 per cent with the lower corporate tax rate,” the brokerage firm added.
Read EquityPandit’s Nifty Outlook for the Week

Get Daily Prediction & Stocks Tips On Your Mobile


Latest
IPO
Weekly
Outlook

Search Stock
UNICORN
Signals
Market
Prediction