ITC Share Price: News that government could ban on sale of loose cigarettes did not show any impact on ITC stock on Monday. The government may consider banning sale of loose cigarettes after a standing committee of Parliament has sent its recommendations urging the government to do so.  

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ITC stock was trading at Rs 341.65 on the NSE, up by Rs 0.25 0.07 per cent from the Friday closing price.

Technical analyst Nilesh Jain said that he is bullish on ITC and recommended buying. Jain, who is Assistant Vice President - Lead Derivative and Technical Research at Centrum Broking said that there has been no impact on it as of now. He said even if such a ban comes, the impact is unlikely to be material.  

He suggests accumulating ITC shares for a price target of Rs 350. The stock has corrected and has come at support levels, he added. On charts, ITC shares have been witnessing a sideways consolidation, he further said.

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Investors who have a 1-month view can hold this stock for a target of Rs 360, the Centrum analyst said.  

The stock was last trading at Rs 350 on 14 November and has traded both ways.  

ITC’s tobacco business accounts for 40-45 per cent of its revenues. Meanwhile, 80 per cent of its EBIT (Earnings Before Interest and Taxes) is contributed by its cigarette vertical.  

As per current estimates, 70-75 per cent volume is sold as loose stock.

Many states including Maharashtra, Karnataka and Chhattisgarh have already banned sale of loose cigarettes.

In India, 6.6 crore people smoke cigarettes annually while 26 crore people consume tobacco in other forms.

Out of total cancer related cases that are reported, 21 per cent is accounted from consuming tobacco.  

According to data from World Health Organisation (WHO), India is at number one position in terms of people in the age group of 16 to 64 years smoking cigarettes.  

The tax on cigarettes is 64 per cent against 75 per cent proposed by WHO.

Inputs from Varun Dubey

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)