Technically buyback would increase the share price for some time. Taking into consideration the total number of shares, the uptick would be limited. Also duration of upward price sustenance is subject to market conditions(demand/supply/overall sentiment), often some gains are lost. The subtle message which ITC management team is providing is that they don’t know what to do with the cash generated. So the options are to either give it back to shareholders as dividend or plan for the buy backs.
There are ample opportunities to scout in market for meaningful acquisitions. The value it brings and the sentiment boost will lead to higher demand and hence higher share price valuations. Also note not all acquisitions translate into higher valuations. Some acquisitions will be more valuable than others. It is a cultural practice such large conglomerates should imbibe.
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