ITC Shares Slump To Near 8-Year Low

Shares of ITC Ltd fell close to 3 percent on Wednesday to a new 52-week low of Rs 172.55. It is also the lowest level for the stock since September 2012.

According to Bloomberg data, around 10 lakh shares of the FMCG company exchanged hands on Wednesday on the NSE. While the buyers and sellers were not immediately known, there was another exchange of 14.3 lakh ITC shares after the first trade.

ITC: Quotes, News

BSE 294.801.95 (-0.66%)

NSE 294.852 (-0.68%)

The stock has been losing value for a couple of weeks now over concerns over earnings growth due to demand slowdown.

Post the hike in the National Calamity Contingency Duty (NCCD) announced at the Union Budget, the stock has declined 26.6 percent from Rs 235.15 (closing price on 31 January) to Rs 172.55.

Last month, ITC increased cigarette prices by 10 to 20 percent across some of its brands.

Prices of cigarettes in the premium segment were increased by 10 percent, while the rate of the regular cigarette of 69-mm size has gone up by around 14-16 percent. Prices of entry-level sub-64 mm small size cigarettes have been raised between 12 percent and 20 percent.

Analysts have raised concerns over the impact the hike in taxes and consequential increase in prices will have on volume growth. While ITC accounts for 3 out of 4 cigarettes sold in the country, the growth of two other key cigarettes manufacturers (VST Industries and Godfrey Philips) has been ahead of ITC's cigarette division in the recent quarters.