Cigarette

ITC stock needs to sustain over Rs 350 to embark a new bull-run

The maker of Kool and Winston cigarettes said it was also "resetting" its next-generation products (NGP) strategy

While high hopes from non-cigarette FMCG, higher dividend payout and strong free cash flows are positive, multiple headwinds for key cigarette business

Loss of jobs due to increase in smuggling and counterfeiting is not on the radar of policy makers

Price increase brought on by spike in National Calamity Contingency Duty announced in Budget

The consolidated income of the company during April-June increased to Rs 858.49 crore, from Rs 612.56 crore in the year-ago quarter

"Buy when everyone is selling" explains one of the principles of Warren Buffett, the world's most celebrated investor, who is known for his "value investing". Fitting this maxim in the Indian context could be ITC, which investors may want to look at.The ITC stock has been a clear underperformer, lagging the S&P BSE Sensex in the past 12 months. Compared to a rise of 27 per cent in the Sensex, ITC is up just about six per cent, because of a negative tax surprise for its key cigarettes business. But, if analysts are to be believed, it may be a good time to accumulate the stock as apart from an expected improvement in business prospects in the next fiscal year, the risk-reward equation is far more favourable.For one, the stark underperformance also means that based on FY19 estimated earnings, ITC's stock valuations are now at 24-25 times, nearly half the 45-46 times of Hindustan Unilever. ITC's trailing 12 months' earnings (ending September 2017) valuation at 31.2 times is also a tad

> Cigarettes stocks rallied today as concerns on a higher sin tax abated with the government keeping rates unchanged in the goods and services tax (GST). The Centre has capped the tax rate on cigarettes at 290 per cent over a period of next five years backed by expectations that the initial tax rate on this industry will have a neutral impact. ITC Ltd, which commands a 79 per cent market share, rose by over 7.5 per cent to touch Rs. 288.90 on the Bombay Stock Exchange in intra-day trade, close to its lifetime high of Rs 292. The scrip finally closed at Rs 281.20 registering a 4.85 per cent growth. Shares of VST Industries also shot up by 11 per cent in intra-day trade on the bourse to touch Rs. 2929.85 and finally ended at Rs 2839.45, registering an upswing of 7.55 per cent. Shares of Godfrey Phillips also peaked to Rs. 1283.75 in the intra-day trade, finally closing at Rs. 1298.50, an increase of 1.04 per cent. Sector analysts attributed the rise in stocks to the markets' ...

Illicit trade in cigarettes has risen from 19.2% of total sales in 2014 to 21.3% in 2015

According to the report, 23.7% of the total cigarettes' trade in Pakistan was illicit and avoids the tax net

Cigarette makers stopping production will result in an estimated loss of Rs 350 cr per day

The production halt will cause the industry a loss of Rs 350 crores