@nirvana_laha
Markets always value it for the future and hardly for the current. Having said that @harsh.beria93 did a wonderful write up on this in his portfolio page
I don’t build narratives to justify investing in a given company. I have shared my speculation on growth in ITC at the end of this post.
There are some flaws in your computation.
EBIT margin of 6% will imply PAT margin of ~4.5%. A 44 P/E (what’s the logic behind such a precise number?) implies valuation of 4.5 x 44 ~ 1.9x sales. This is almost the cost to build a brand. In private markets most good brands trade b/w 4-6x EV/sales. So I think the FMCG business is much more valuable than the va…
Attached SOTP valuations from Ventura below
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