te Stocks to Buy: ITC enjoys a love-hate relationship with investors; here is why in this special Valentine's Day 'Love Me or Hate Me' report | Zee Business

Stocks to Buy: ITC enjoys a love-hate relationship with investors; here is why in this special Valentine's Day 'Love Me or Hate Me' report

ITC Ltd is a stock that has been in a love-hate relationship for investors. On this valentine's day, Zee Business' research team brings an interesting take on this love-hate relationship. Senior Research Analyst Varun Dubey tells why he loves this stock while Kushal Gupta tells why he does not like this stock.

Stocks to Buy: ITC enjoys a love-hate relationship with investors; here is why in this special Valentine's Day 'Love Me or Hate Me' report
ITC is a monopoly player in the cigarette business.

ITC Ltd is a stock that has been in a love-hate relationship for investors. On this valentine's day, Zee Business' research team brings an interesting take on this love-hate relationship. Senior Research Analyst Varun Dubey tells why he loves this stock while Kushal Gupta tells why he does not like this stock.

ITC is a monopoly player in the cigarette business. It has also dispelled this notion from time-to-time that if the prices are increased, the volumes will go down. It has proved time and again that no matter how much the prices go up or taxes are levied, the growth is there and will be there in future as well, Dubey said. This is the reason for love.

Meanwhile, Gupta said that there is perpetual fear of a sin tax and that is looked in budget documents every year. This has been the biggest issue for many years now. This is one of the sour points for investors regarding this stock. He also added that it is a very slow mover and has not moved much lately despite many positive news. 

TRENDING NOW

Dubey said that ITC is also focusing on other segments as well including FMCG sector, hotel, and agriculture, which may lead to good results for the company. 

Gupta said that nearly 40 per cent of the total revenue of the company comes from the business of tobacco which is a great area of concern. No real benefits will visible until the value unlocking happens. He further said that the company has till now not given any clarity about this.

Dubey, in ITC's defence said that the value unlocking issue is being discounted by investors. He said that the cigarette business will be segregated from other businesses sooner or later. And whn its business are segregated, it will be realised that the SOTP (Sum-of-the-parts) will not be less than Rs 1000 for the share.   

For Mor details, Watch Full Video Here:-

Written By: ZeeBiz WebTeam
Edited By: Shivendra Kumar
Updated: Tue, Feb 15, 2022
01:30 pm
ZeeBiz WebDesk
RELATED NEWS
ITC Q2 results preview: Cigarette volumes likely to see 5-6% growth; PAT seen rising 11% ITC Q2 results preview: Cigarette volumes likely to see 5-6% growth; PAT seen rising 11%
ITC hits yet another all-time high; is there more upside ahead? ITC hits yet another all-time high; is there more upside ahead?
ITC share price all-time high record high BSE NSE today cigarette stocks target ITC share price all-time high record high BSE NSE today cigarette stocks target
ITC shares touch all-time high, come within inches of Rs 400; what analysts suggest on cigarette-to-hotel conglomerate's stock ITC shares touch all-time high, come within inches of Rs 400; what analysts suggest on cigarette-to-hotel conglomerate's stock
ITC share price touches record high of Rs 394 in volatile market; what should investors do? ITC share price touches record high of Rs 394 in volatile market; what should investors do?

By accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

x