ITC gains on Gold Flake price hike

Thu Jul 4, 2013 6:39pm IST

A man talks on his mobile phone as he walks past an ITC office building in Kolkata September 4, 2012. REUTERS/Rupak De Chowdhuri

A man talks on his mobile phone as he walks past an ITC office building in Kolkata September 4, 2012.

Credit: Reuters/Rupak De Chowdhuri

Related Topics

Stocks

   

Reuters Market Eye - Shares in ITC gained 3.8 percent, marking its biggest single day gain since May 9, 2012 after the company raised the price of its Gold Flake Regular Filter cigarettes.

An ITC spokesman confirmed the price hike.

ITC has raised Gold Flake Regular Filter price to 59 rupees from 55 rupees for a pack of 10 sticks, while that of Gold Flake Premium Filter has been raised to 58 rupees from 55 rupees.

UBS notes the price increase will not impact volumes but could lead consumers to upgrade to Gold Flake King size cigarettes given the price difference between the two would be reduced. * Any shift would provide ITC with a "much better value positioning", UBS says.

UBS maintains ITC as a top pick with a "buy" rating and a target price of 400 rupees.

Dealers also add that some value-buying was also seen after ITC shares fell 4.6 percent in June, underperforming the Sensex's 1.8 percent fall in the same period.

(Reporting by Abhishek Vishnoi)

FILED UNDER:

Reuters Showcase

FMC-SEBI Merger

FMC-SEBI Merger

Regulatory shakeup could revive commodities markets   Full Article 

Market Eye

Market Eye

Sensex, Nifty end higher after bumpy budget-day trading  Full Article 

Tax Incentives

Tax Incentives

Budget woos foreign investors  Full Article 

Excise Duty

Excise Duty

Cigarette makers fall after budget hikes excise duty  Full Article 

Welcoming the Budget

Welcoming the Budget

India Inc cheers corporate tax cut, simpler rules  Full Article 

Gold Price

Gold Price

Gold prices to rise after budget keeps import duty high  Full Article 

Fuel Prices

Fuel Prices

IOC to raise diesel, petrol prices from Sunday  Full Article 

Moody's on Budget

Moody's on Budget

Budget "credit neutral" from a ratings perspective - Moody's   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage