ITC, largest shareholder BAT seem to have a lot in common
Despite ITC’s diversified business, the stock market has been valuing it largely on the same lines as BAT, which is undiversified.
Synopsis
Even as the Sensex is soaring in uncharted territory, the ITC stock seems to have got stuck around Rs 200 levels. The stock first traded at this level in 2013. It is now trading at a low PE of 19 and a high dividend yield of 5.3 per cent. It had hit a record high in July 2017.
ET Intelligence Group: While ITC may want to steer clear of any comparisons with its largest shareholder British American Tobacco (BAT), the stocks of both companies share some peculiar similarities. Owning 29.58 per cent shares in ITC, the London-based cigarette major has a nominee director on the board of the Kolkata company.
Even as the Sensex is soaring in uncharted territory, the ITC stock seems to have got stuck around Rs 200 levels. The
