Coffee can method

[1.5cr]

Hindustan Unilever (HUL)

The way I see ITC is that you are only paying for the cigarette business. It is a monopoly business that grows volumes in single digits on average. Earnings grow at 10% cagr on average and a 2% yield. Yield keeps increasing as earnings grow and the cig business has shown huge pricing power as even in the worst taxation times ITC still managed to grow earnings. This shows the underlying strength of its cigarette business. This business needs pretty much no capital to grow and operate as well. Th…

Some thoughts on ITC.