ITC surges 7% on fresh development on GST, upbeat brokers
Shares of the cigarette major jumped 7.75 per cent to hit a high of Rs 289 on BSE. At this price, the stock was trading 35.22 times its trailing 12 months earnings per share.
By ETMarkets.com | Updated:
NEW DELHI: Shares of ITC and other cigarette makers soared up to 7 per cent in the morning trade on Friday amid reports foreign brokerage CLSA has maintained a 'buy' rating on ITC with a 12-month target price of Rs 325.
Shares of the cigarette major jumped 7.75 per cent to hit a high of Rs 289 on BSE. At this price, the stock was trading 35.22 times its trailing 12 months earnings per share.
"For ITC, if the outlook on taxation front is slightly more clear, I think that would lead to this company bridging the gap in multiples," said Pankaj Pandey, HoR at ICICIdirect.com told ET Now.
The GST council has decided to allow for cess of up to 290 per cent in addition to another possible levy of Rs 4,170 per 1,000 sticks, TOI reported. Soft drinks and soft drinks and mineral water will face up to 15 per cent levy on top of the 28 per cent GST rate.
A media report, meanwhile, suggested that Goldman Sachs is expecting the stock can more than double under a ‘blue sky’ scenario.
The GST tax structure is being seen as revenue-neutral outcome for ITC.
Shares of the cigarette major jumped 7.75 per cent to hit a high of Rs 289 on BSE. At this price, the stock was trading 35.22 times its trailing 12 months earnings per share.
"For ITC, if the outlook on taxation front is slightly more clear, I think that would lead to this company bridging the gap in multiples," said Pankaj Pandey, HoR at ICICIdirect.com told ET Now.
The GST council has decided to allow for cess of up to 290 per cent in addition to another possible levy of Rs 4,170 per 1,000 sticks, TOI reported. Soft drinks and soft drinks and mineral water will face up to 15 per cent levy on top of the 28 per cent GST rate.
A media report, meanwhile, suggested that Goldman Sachs is expecting the stock can more than double under a ‘blue sky’ scenario.
The GST tax structure is being seen as revenue-neutral outcome for ITC.
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