Any news of ITC aquiring MTR ready to eat business and also Eastern Masala and that will make ITC a very strong player in the ready to eat segment in South India with export business to US and Europe
2 Likes
According to screener BAT’s shareholding and other fii and dii has gone down and the promoters shareholding has gone up.How is this being done with any bulk deals ever getting recorded?
1 Like
It is the promoters whose share holding is going up,so the Institutional investors are selling to promoters without actually doing any bulk deal.
2 Likes
Interesting to see that : https://www.itcstore.in/ is not processing any orders currently.
As per the current senario, I see ITC valuation to be standing just below it’s intrensic value with an all time low PE of 15.
Its a great business selling at fair price.
1 Like
Its PE is 25, Screener shows 15 because of one time profit from sale of ITC hotel
4 Likes
I think, we may have to exclude one time profit (due to sell of ITC hotels) and re-calculate P/E to get better idea.
Actually, I based my intrinsic value estimate on the 2024 financials, using fairly modest growth assumptions and factoring in qualitative aspects of the business..
Btw, fair point: after the ITC Hotels demerger, the PE of ITC Ltd did compress — not because the business suddenly got worse, but because the market now sees a higher share of earnings coming from cigarettes and lower-multiple segments.
2 Likes
Recently ITC sent its annual report and annual report of its subsidiaries are available at ITC website.
An observations on capital allocation worried me, look forward to views of fellow VP members.
As per exchange notification by ITC Ltd, Blazeclan was acquired for approx. Rs. 485 Crores and was informed to have Rs. 295 Crores as annual revenue.
Whereas, as per published annual accounts, consolidated revenue in FY2024 was 201 Cr and in FY2025 reduced to approx. Rs. 198 Cr.
On top of it, it is a loss making business, even after 15 years of its incorporation and is in IT/ITES industry.
Question arises:
-
Why company overstated revenue numbers in exchange notification (for FY2024) vs those in published annual accounts
-
Valuable cash spent on acquisition of a loss making business, is it really worth.
-
Post acquisition Blazeclan has been proposed to merge with ITC infotech also, this will hide it’s subsequent standalone performance from scrutiny - is it a deliberate attempt to hide some financial goofup.
-
Above all, is management really serious on judicious allocation of capital or it is just another value trap where marketing stories are entirely different vs in reality actions of management.
Disc: Invested
20 Likes
Seems MTR going for IPO listing rather than selling biz to ITC.
2 Likes