Beauty lies in the eye of beholder…
Most stocks have fans and haters . ITC is fortunate to have both in large nos … That helps balanced investor to steady their views …
ITC is great stock to own at < 16 PE level as it has some very solid time tested cash generating business which will keep dividend flowing …Also unlike its peers it owns many of manufacturing / logistic and employee housing assets … that will make it more inflation proof versus peers
But then ITC also has lot of business which have
- Regulatory risk like tobacco ( tax / business risk) , agri business ( stock limits and export ban etc can overnight impact revenues )
- Cyclical business like Paper and Hotels
So when PE is high , these Risk can hurt a lot if they manifest …
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