BUZZ-India's ITC slumps after govt proposes raising excise duty on cigarettes - Reuters News
03-Feb-2020 10:35:00 AM
** India's biggest cigarette maker's shares ITC.NS fall as much as 6.4% to 205.00 rupees - their lowest in over 3-1/2 years
** India government in its federal budget on Saturday proposed raising excise duty on cigarettes and other tobacco products
** "This steep duty increase on cigarette has come as a negative for the sector after more than two and half years of no major change in rates" - Nirmal Bang Institutional Equities
** ITC "will have to increase cigarette prices by about 6.6-7.0%, to pass on the increase in duty" - Antique Stockbroking Ltd
** ITC on Friday posted Dec-qtr profit of 41.42 bln rupees ($582.81 mln) vs consensus forecast of 38.39 bln rupees, according to Refinitiv data (Full Story)
** At least 10 brokerages downgrade PT for ITC since Saturday, with median PT now at 305 rupees; average rating on stock is "strong buy" - Refinitiv data
** Stock fell 15.6% in 2019