I am not recommending anything just giving my views.
I would stay away from ITC… WHY ?
1.because the returns you will get are going to be way less than you will get from a mutual fund. I think you can extend your exposure to midcap/smallcap if you can manage the risk. And lower your exposure from finance companies a little.
2. Promoter holding is 0, IMO promoter holding is very crucial for a company.
And 1 more thing about your perception about ITC that cigarette business is evergreen !
No the new generation is educated and they very well know the adverse effects and in future government will also try to discourage tobacco business as it costs to govt. eventually in form of healthcare expenses.
##Current smoking has declined from nearly 21 of every 100 adults (20.9%) in 2005 to about 15 of every 100 adults (15.1%) in 2015( USA figures )##
I fully agree with your point of view however the government healthcare spend is too low in India. Further, we are many years away from reaching that education levels in India not forgetting the fact that educated class is the highest contributor to cigarettes. I am also betting on success of their Agri business which may turn out to be a dark horse in next 3-5 years.
I was holding powergrid till Oct 2017 and then sold off completely. It moved down till 190 and is back to 200 range now… Though they will have continuous business growth for next 2-3 years , decided not hold on PSU