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ITC share price today slumped around 5 per cent after the news break of Government of India forming committee for finalising taxation policy for tobacco. After the tobacco policy, tobacco companies will be aware about the taxes getting imposed on them, which is not the case these days.
Why ITC PE is low?
ITC’s lower valuation is due to the hangover of its slow-growing tobacco business and the losses it incurs on its fast-growing non-tobacco FMCG business.
What happened to ITC’s stock?
That day the stock saw its biggest fall since 1992. Investors were left aghast. With its almost 13\% crash, cigarette major ITC’s stock hardly displayed blue-chip behaviour. The fall meant a massive Rs 450 billion hit to the stock’s market cap – in one day. And the fall from the high earlier this month was even worse at 20\%.
How did ITC’s profits decline in Q1 FY21?
Profit before Tax (PBT) also declined by 35\% YoY and 30.7\% QoQ in Q1 FY21. Since, the company is virtually debt-free, there is no interest payment cost incurred. In line with the decline in Operating Profit and PBT, the Net Profit of ITC also declined by almost 11.6\% YoY to Rs.3,663 Cr from Rs.4,142 Cr in Q3 FY20.
What are the Financial Highlights of ITC Limited?
ITC Limited is one of India’s foremost private sector companies incorporated in August 1910. It is an Indian multinational conglomerate company having headquarter in Kolkata, West Bengal. ITC has a diversified presence in FMCG, Hotels, Agri-Business, Papers, Packaging, and Paperboards etc. Lets see the Q3FY21 Financial Highlights of ITC Ltd.
Is ITC a blue-chip stock?
With its almost 13\% crash, cigarette major ITC’s stock hardly displayed blue-chip behaviour. The fall meant a massive Rs 450 billion hit to the stock’s market cap – in one day. And the fall from the high earlier this month was even worse at 20\%. Reports from some quarters forecast even steeper falls still.