ITC let's C. ITC the Turtle of the market. No matter how strong it's shell is, Big bulls are still not ready to enter.
But why not? Here is math,
Core segment of Indian Tobacco Company i.e. Cigarettes now no more core as it always been easy hunt for government tax department.
Now Cash cow and evergreen emerging sector FMCG is showing good YoY growth but products are not of necessities category and more scattered. Recently it pumped in Chocolate portfolio with 10k crore and 50 products. So it seems it targeting more young customers and not ready to race with HUL or other FMCGs.
Agri. Business is in boost and in way to replace with tobacco sector.but stone in path is stationery and hotel sector. Unless pandemic is over it will remain as special child with regular feed. Which is also having leat ROCE with highest employed capital.
So Institutes will incash only after clear signals of normalisation of economy.but for us it's at good level if crosses resistance shown under below chart.
Why not buy at consolidation phase and catch value instead waiting for news that ' India's Big bull ready to ride ITC.'
