Sharmila Joshi of Prabhudas Lilladher is of the view that one can hold ITC with six-months to one-year kind of timeframe.
Joshi told CNBC-TV18, "The first reaction to the outcome of the Budget, one could see volume declines in ITC because one has seen that in all, non-filter and filter cigarettes will now be charged the same amount of excise duty and though it could form a small part of the portfolio of ITC, how its going to affect prices going forward and how they really deal with it possibly by increasing prices but to what extent and for which products and is it going to be across products; that really remains to be seen."
She further added, "ITC is also more than just a cigarette story, a majority of their income and they are leaders in that segment. But its also getting into other lines of business whether its paper, hotels or whole agri initiative, so you have seen increasingly the company growing back profits into the other businesses so that they increasingly start contributing to the bottomline. If the investor has a slightly longer-term outlook, six-months to one-year kind of timeframe, then one could hold on to."
Source: Moneycontrol.com
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