1. Sandeep Gupta

    Sandeep Gupta New Member

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    whats the outlook for ITC
     
  2. BombayBoy

    BombayBoy Well-Known Member

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    Smoky. Burdened by sin tax. Love the business but no money for ITC.

    Wait for the budget. Cigarettes business is a cash cow for ITC, which will be slaughtered by taxes. But I've not seen a smoker complain about taxes.

    Revenue from tobacco business ~ 48%, contribution to pre tax profits ~ 74%! Once the investment in FMCG business starts yielding returns on the capital employed, it'll look better.
     
    Last edited: Jan 26, 2016
  3. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Smoker complain but have no choice because of addiction. Same with liqour stocks.
     
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  4. BombayBoy

    BombayBoy Well-Known Member

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    The price conscious, maybe. The demand is price inelastic.

    We always have and make choices.

    I chose to reply. Not encouraging smoking. Not complaining unless you're blowing smoke in my face.

    "I can control my destiny, but not my fate. Destiny means there are opportunities to turn right or left, but fate is a one-way street. I believe we all have the choice as to whether we fulfil our destiny, but our fate is sealed."

    Paulo Coelho
     
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  5. Sandeep Gupta

    Sandeep Gupta New Member

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    So v can expect ITC going down further as budget is fast approaching
     
  6. BombayBoy

    BombayBoy Well-Known Member

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    I can't comment on price levels. It's held post results, been in a narrow range over 6 months and traded at yearly high on 28 Feb, 2015 - ₹409

    I'll buy post budget when there's certainty over taxes even if it means paying a premium over current rates.
     
  7. kharb

    kharb Well-Known Member

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    Exact Logic for investment since decades.
     
  8. Gopesh chaturvedi

    Gopesh chaturvedi New Member

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