Yogesh Mehta from Yield Maximisers on #ITC. He believes the stock could be valued at 35-40x PE in next 3-4 years.

Source - Economic Times

Time for a thread πŸ‘‡πŸ»πŸ‘‡πŸ»

@dmuthuk

@Kiran24Rajput

(1/n)
ITCs balance sheet is distributed 45-55 between cigarette and the non cigarette business.

(2/n)
If with a price hike in cigarette business and a volume growth of ~4%, EBITDA rises by ~8%. It will not be significant on balance sheet but it will be positive because every time in the budget , everyone is expecting sin tax to be increased & that is a burden ITC carries

(3/n)
Tobacco products are out of GST regime but overall ITC is a great company and still available at 20 PE multiples.

(4/n)
There is a valuation gap within peer sector and the growth is more than that of other peer companies but this is only laggard which is pulling valuation down.

(5/n)
2-4 years down the line, the moment we see balance is in favour of non cigarette business than it will have much better valuation to command.

(6/n)
I do not doubt the company can again be valued at 35-40x PE multiple over next three to five years. If not immediately.

(7/n)
In a nut shell, it is a great company with strong balance sheet, good dividend payout and very strong ROE and ROcE and the growth rate is commendable.

(8/8)
@AnyBodyCanFly is projecting #ITC to be a potential 40-50x PE stock in a span of 24 months. πŸ‘Œ Image

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More from @MlnDollarMinds

23 Jan
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Time for thread πŸ‘‡πŸ»πŸ‘‡πŸ»πŸ‘‡πŸ»

@dmuthuk

@Kiran24Rajput

(1/n) Image
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(1/n)
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(2/n)
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Time for thread πŸ‘‡πŸ»πŸ‘‡πŸ»πŸ‘‡πŸ»

(1/n)
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(2/n)
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3/n
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(20/n)
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(22/n)
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(1/n)
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(2/n)
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Time for a thread πŸ‘‡πŸ‘‡πŸ‘‡

@dmuthuk @Kiran24Rajput
(1/n)
United Spirit Management comments on the industry and the company.

Demand has returned to pre-Covid-19 levels. It is also benefiting from some tailwinds – duty-free shifting to duty-paid and shift from beer.
(2/n)
On-premise footfalls are still lower at 25-30%, while on weekends footfalls are a bit better. Wedding impact is still there but not that visible as the rest of the top end is growing well. Overall demand, including off-premise, has improved much better than expectation.
(3/n)
Read 12 tweets

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