Is ITC A Value Trap?

Why is ITC underperforming?

Another contributing reason for the underperformance of ITC is due to the poor performance of its non- tobacco businesses.

Despite being in these non- tobacco businesses for over 20 years, ITC has not been able to harness its potential and has not been performing as well as its peers in the FMCG business..

Is ITC undervalued?

Paras Bothra, President of Equity Research, Ashika Stock Broking, told Business Insider that “ITC looks to be undervalued from a valuation perspective, and hence it is a good value Buy.”

What does ITC mean?

investment tax creditabbreviation for investment tax credit: a reduction in taxes on company profits: The ITC allows business owners to receive a tax credit for up to 30% of the cost of an energy-efficient project.

Does ITC give dividend?

In the past 12 months, ITC Ltd. has declared an equity dividend amounting to Rs 10.15 per share….Corporate actions: Dividend history for ITC Ltd.Ex-DateJuly 6, 2020Dividend Amount10.15Dividend TypeFINALRecord Date-19 more columns

How do you identify a value trap?

How to Identify a Value TrapImproper Management Structure. … Inefficient Capital Allocation. … ‘Over-promising’ and ‘Under-delivering’ … Debts. … Following High-profile Investors or Successful Management Teams. … A Massive Drop in Share Price in the Near-term. … Trading at Low Multiples of Book value, Earnings, Cash flow, etc.More items…•

Is ITC debt free company?

ITC is well-known for being in the category of ‘Debt-free companies that pay dividends’.

What do you know about ITC?

ITC Ltd is one of India’s foremost private sector companies. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.

Which share to buy now?

HOT STOCKS – BEST STOCKS TO BUY TODAYComapny nameCREATE DATE/TIMETARGET PRICEUPL1/16/2020 12:47 PMTarget 596-600Sun Pharma.Inds.1/16/2020 12:47 PMTarget 460-462Kotak Mah. Bank1/16/2020 12:47 PMTarget 1706-1710

Who is owner of ITC?

Sanjiv PuriITC LimitedFormerlyImperial Tobacco Company of India Limited (1910–1970) India Tobacco Company Limited (1970–1974) I.T.C. Limited (1974–2001) ITC limited (2001–present)HeadquartersVirginia House, Kolkata, West Bengal, IndiaArea servedIndian Subcontinent Gulf CountriesKey peopleSanjiv Puri (Chairman & MD)16 more rows

What’s a value trap?

Value traps are investments that are trading at such low levels and present as buying opportunities for investors but are actually misleading. For a value trap investment, the low price is often accompanied by extended periods of low multiples as well.

Is BP a value trap?

Shell and BP look cheap on price-to-earnings ratios of around 10 but they are value traps, according to Mr Healey.

Is ITC a good bet?

I have been investing in ITC since 1983 and even today I continue to do so. 100% professionaly managed,transparency in business, high ethics,good policy to reward investors….all make ITC a good bet to buy with a long term perspective. … One will give advice to buy ITC only with vested interest.

Is ITC a good long term investment?

ITC has been consistently growing year after year since 2000 till year 2019. Its Market Value was just 18 thousand crore in year 2000. Last year 2019, ITC was worth 3.63 lac crore ! The above chart shows its consistent growth for past 19 years.

What is a bargain stock?

If the share price falls but the company’s fundamentals remain strong, this stock may be the bargain you’ve been looking for. (If the market is up but the stock is down, the stock isn’t necessarily a loser.

What is full form ITC?

The Company was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company’s ownership progressively Indianised, the name of the Company was changed to India Tobacco Company Limited in 1970 and then to I.T.C.