Mayuresh Joshi of Angel Broking told CNBC-TV18, "ITC is beaten down by rightful reasons, the loose cigarette ban, the cigarette volume de-growth of 13 percent that we had witnessed is taking a toll on the margins of ITC on a consolidated basis. The other businesses including agri have shown de-growth in terms of the topline, 28 percent to be more precise for agri and though other fast moving consumer goods (FMCG) held up, the other businesses will take time to mature."
He further added, "The core cigarette business will take some amount of hit. And even if demand inelasticity is still around for the cigarette consumption story as a whole, the topline will show muted growth going forward. So, one really needs to give ample of time for ITC though valuations are their favour. So, with a month’s perspective, very clearly, he could probably exit the stock on rallies."
"We are liking housing finance companies, so something like an LIC Housing Finance is looking very attractive and that can show some moment in my opinion from a short, medium and a long-term perspective as well. The story remains intact. So the asset quality has held up for a majority of these players. Valuations not looking too expensive and though one expects rate cuts not to come if monsoons turn out to be truant. Our take is that over a longer period of time, the net interest margins and spreads should maintain for these guys. So, LIC stands out for us in terms of both an earnings perspective as well as the valuation that it is currently deriving at. So, LIC Housing Finance can be a very good long-term bet as well." he said.
Disclosure: Analyst doesn't hold the above stock but he may discussed it with his clients.
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