Future and Options: ITC
ITC has closed the day with a price of 207 on the NSE. With a value of 207, its valuation is around 17. It is historic Low valuation as below. The reason being the rice in NCCD in the recent budget. I believe that ITC should trade minimum above 20 P/E. ITC has already raised the prices of its products to counter effect the price hike: Excerpts from Economic Times: " ITC has hiked cigarette prices by 10% to 20% to offset the increase in taxation on cigarettes announced in the budget. The maximum price hike has happened in the small and regular size sticks which account for bulk of the sales. ITC, which accounts for every three of four cigarettes sold in the country, has increased prices by 10% in the premium segment, while for the regular cigarette of 69-mm size the price has gone up by around 14-16%. In entry level sub-64 mm small size cigarettes, the hike is between 12% and 20% depending on the brands." One of my colleague who is a regular smoker. Wh...