English
Specials
    Premium
    My Alerts
    MoneycontrolGo PRO @₹99
    Moneycontrol PRO
    Check Credit Score
    Check Credit Score
    HomeNewsBusinessStocks

    Is ITC still a value play?

    Well-diversified business model with robust free cash flows

    Anubhav Sahu
    Khushboo Rai
    March 15, 2024 / 09:07 AM IST
    Is ITC still a value play?

    The core cigarette business (40 percent of sales) — the cash cow for ITC — will continue to be a stable source to fund and incubate other growth engines

    PRO Only Highlights
    -      Quarterly performance largely backed by improved realisations
    -      Medium-term triggers China plus and protectionist measures for tyre industry
    -      Valuations not inexpensive; but improved medium-term outlook

    Highlights:

    • BAT retains 25.5 percent share post the stake sale

    • Stable tax regime in cigarette business to help gain market share

    • Operating leverage to further unfold in the FMCG business

    • Focus on value-added products for Paperboards and agri business

    • Hotel business in a sweet spot due to demand-supply mismatch

    • Superior free cash flow yield vs peers

    • Investors can accumulate on declines

    With the conclusion of the stake sale by British American Tobacco (BAT), the ITC stock is past the supply overhang. BAT is the largest

    • PRO Panorama

      Moneycontrol Pro Panorama | Oil market heats up

      Mar 20, 2024 / 02:49 PM IST

      In today's edition of Moneycontrol Pro Panorama: Japan's bank rate hike and its implications, current political situation re-asser...

      Read Now
    • PRO Weekender

      Moneycontrol Pro Weekender: Saint Powell and the inflation dragon

      Mar 9, 2024 / 10:03 AM IST

      While the markets reach all time highs, the Bank for International Settlements warns that the last mile on disinflation is a diffi...

      Read Now

    To read the full story,

    Subscribe to Moneycontrol PRO
    • Ad-free Experience
    • Access Exclusive Stories
    • Weekly Investment Ideas
    • Daily Technical Calls

    New to PRO?

    Start Your 30-Day Trial at ₹ 0

    Already a member? Sign In

    What Do You Get

    • Ad free Experience

      Seamless navigation, faster responses.

    • Expert Perspective

      Explore 230+ exclusive editorials every month

    • +

      Uncover Insights from World-Renowned Experts and Journalists

    • Actionable Insights

      40+ weekly investment ideas + 3 to 4 daily technical calls

    • Virtual Events

      Exclusive Live Webinars for Expert Trading & Investment Strategies!

    • Newsletters

      Stay ahead with daily and weekly insights

    View Offers

    Unlock exclusive discounts