Amit Dalal, Executive Director, Tata Investment Corporation shares his view on ITC .
Dalal told CNBC-TV18, "ITC number is a combination of both. I think the expectations kind of just built up on the higher side as far as this company is concerned. But one must remember that unlike the other FMCG companies, most of its earnings still come from tobacco. When you have a low volume growth business like tobacco, there is always a risk of some kind of earnings not matching up to people's expectations. One of course looks forward o the FMCG business catching up in a very big way but for it to become a large part of a big segment of its earnings, it's going to take some time. But I don't see any other problem with the results. I think the results were fine. I just think people's expectations are little too high."
He further added, " Axis Bank , in terms of earnings, I don't think there is any concern at all. If you take Axis, forward earnings, the discounting is absolutely in favour of investment. I think the PE ratio is less than perhaps 10 or 12. You kind of believe that that's something that either the market is missing or maybe there is something that we can't see within the results. But going from one quarter to other quarter, we don't get any negative news and that's perhaps a positive and that would lead to re-rating of that stock which had a much higher level last year than it is in terms of price today."
