ITC gains on Gold Flake price hike
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)
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