ITC hikes cigarette prices; shares gain

Moneycontrol Bureau

ITC shares gained over 1 percent on Tuesday on reports that it has increased prices of some of its cigarette brands. According to a news agency report, the Kolkata-based market leader has raised price of Gold Flake Kings by Rs 20 per pack of 20 cigarettes. Price of Wills Navy Cut has been increased by Rs 10 per pack of 10 cigarettes. The price hikes come in the wake of increase in excise duty on cigarettes in the Union Budget and several states too have increased taxes. Analysts have warned that a sharp increase in duties, which will be passed on by ITC, could impact volumes in the short-term. However, over the long-term, ITC has always managed to pass on the hikes successfully. At 12:45 hrs, ITC shares were up 1.3 percent at Rs 303.90 on NSE.