Itc and hul


(kishor barhate) #16

Manharbhai,

Do pidilite & titan ind also shall be considered in this category. Pls share your views on both


(manish dwivedi) #17

UP FDA finds lead in Yippee!!! Now ITC is in the radar.


(Suneel) #18

May be UP FDA has a big problem which need to be cleared before they test anything. Only they seem to be finding problem.


(spvk1) #19

(Raj A A) #20

ITC: IN PURSUIT OF NEW HORIZONS
CREATING GROWING VALUE FOR FARMERS, CONSUMERS AND SOCIETY
Address by Chairman, Mr YC Deveshwar
107th Annual General Meeting
ITC Limited
July 27, 2018

file:///C:/Users/Raj/Downloads/ITC%20AGM%20Speech%202018.pdf


(A. King) #21

Which FMCG will perform ?
image


(Shailesh) #22

Interesting comparison


(Ranga Kiran) #23

As on September 30, 2018, Specified Undertaking of Unit Trust of India (SUUTI) held around 9.63 per cent stake in Axis Bank, 7.97 per cent in ITC and 1.80 per cent in L&T.

While the government is waiting for L&T to launch a buyback offer to tender its shares; for holding in Axis Bank and ITC, it would consider off-market deals, an official said.

“We are open to selling stake in Axis Bank and ITC through bulk or block deals. It all depends on the valuation,” the official told PTI.


(dprashant) #24

Any one acccumulating ITC at these levels ?
Does it appear to be good long term (5-7-10 year ) bet ?
Or it looks cheaper only optically


#25

PE is 31, PEG is 3.6, so definitely not cheap. I think of this as a buy and hold company and I have been purchasing at 250-285. But it fell below 200, 3 years ago, so you may want to wait.


(dprashant) #26

I meant it’s cheaper on relative basis compared to other companies in pack .
May be because market is giving valuation of cigerrarates business and not FMCG yet


#27

Yes, which means it does not belong to the FMCG pack. But if it is yet to be included in the pack, why do you want to buy it? What do you think of its valuation if you consider it to be a cigarette company?


(dprashant) #28

It’s already part of my PF and I am adding free every month ( weekly ) and currently forms around 10 percent of my PF.
Was just trying to have others views too as I am prone to biases hence checking.


#29

Mine too, although not 10%, I also add regularly.

I don’t think biases has a place in purchasing FMCG companies in the sense that there will be demand and growth for the products although it is a competitive space, so you are not making any big mistake unless you have paid a big price and investing for long term. And as you know it hovers around 270-280 many times, so If this is part of your long-term portfolio, you could wait for Nifty to fall, which many expect to happen.


(dprashant) #30

Thanks for all the inputs


(Ranga Kiran) #31

(Ranga Kiran) #32

(Ranga Kiran) #33

(1.5cr) #34

I have been reading more into ITC lately. (whatever little bit my amateur skills allow me to do).

My view is that the stock is cheap at 30x. It is a free cash flow machine yielding 2% in div. The FMCG business is a big trigger for profitability going forward. I think they can pull industry standard opm if not slightly lesser, but even then it will be a big boost to all metrics. That coupled with the increase in free cash due to nature of the business would increase dividends further. With a long term view of 5 years or maybe more, at 30x today with a 2% yield downside seems limited. Cigarette business is a stable cash cow and govt will not jeopardise tax income from cigarettes, so there will always be a sort of quid pro quo. As far as disruption goes, yes they can be disrupted by vapurisers etc: But we must remember that ITC started its own vape that was stopped. Vapourizers are banned in many countries including India due to various legal and health concerns, so even ITC had to stop selling their vape in 2014 if im not wrong.

Their FMCG brands need no introduction. And they have big ambitions if mgmt commentary is anything to by, they want to achieve 1L crores in the next decade in revenue from fmcg business. They definately have the cash to back this. I think FMCG business will turn around and some brands extremely strong and will do well.

I think they could be a great compounder. At this price it is like paying only for cigarrette business…almost atleast.


(Ranga Kiran) #35