Correction in ITC shares overdone - Goldman
Reuters Market Eye - Goldman Sachs believes a recent correction in cigarette maker ITC Ltd (ITC.NS) shares is overdone, offering a buying opportunity.
ITC is down 10.6 percent since index compiler FTSE cut its free-float weighting on the stock in mid-December, adding to lingering concerns India would implement a plain packaging norm or bigger warning pictures for cigarettes.
Goldman said ITC offers "an attractive risk-reward" given the cigarette maker has "robust" pricing power and will benefit from the launch of new cigarettes.
An analysis of nine markets that have introduced large pictorial warnings since 2001 did not make a difference in smoking patterns, either on prevalence or premiumisation, says the investment bank.
ITC shares were up 1.1 percent as of 12:27 p.m.
(Reporting by Manoj Dharra)
- Tweet this
- Share this
- Digg this
- Govt considers ban on e-cigarettes, sale of single smokes
- Islamic State fighters kill 220 Iraqis from tribe that opposed them
- Sensex surges 500 points on BOJ easing, L&T gains
- PRECIOUS-Gold, silver tumble to four-year lows as dollar rallies
- Japan's central bank shocks markets with more easing as inflation slows
Shares Hit Record
The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro. Full Article
China's shadow banking sector growing rapidly, third largest in world - FSB. Full Article