Exit ITC, says Dipan Mehta

Dipan Mehta, Member at BSE & NSE told CNBC-TV18, "I think this recovery which we have seen in ITC is an ideal opportunity for even long term investors to exit out. Clearly, the growth is slowing down significantly for the company and although lot of investors classified as a fast-moving consumer goods (FMCG), the stock will have to be looked at it as a pure tobacco company and there are many headwinds over there in terms of regulatory action, in terms of consumption related issues, in terms of taxation and many such restrictions.""Clearly, ITC management has not been able to make a success of any of the businesses which it has diversified into and those remain extremely very low returns on investment for the company as a whole and I have not justified the premium valuation with the company deserving at this point of time. So my sense is that it going to be a long term underperformer and investors are advised to exit out of the stock gradually at least for the next 2-3 months or so," he said.