Mayuresh Joshi, VP- Institution at Angel Broking told CNBC-TV18, "Clearly the topline disappointed for ITC but in terms of the volume de-growth one was always expecting with the kind of excise duty raises that one had seen that the volume de-growth will happen. But again our take is probably that with all the overhang that is probably impending onto the stock in terms of the cigarette ban so on and so forth at the company level they will come out with some sort of strategies to counter that and clearly in terms of valuation at 24.5 times forward earnings it is one of the cheaper stocks available in the FMCG pack.”
He further added, “One may hold on to the stock with a horizon of a year or year and half at least. Probably one needs to take an impact if the loose sale ban does come through what kind of impact it has on the topline for ITC. But the other businesses should also cope up over a period of time. For FMCG, paperboards, hotel business should start delivering over the next few quarters.”
“For NTPC probably FY15 with the kind of regulatory overhang the margins would see some amount of muted response, but going over a longer period of time the Return on Equity (RoEs) would bounce back to sustainable levels and again in terms of profitability the company is poised for good growth in terms of power reforms going through. So, out take is hold on to both the stocks, have a two year horizon, the stocks will give good returns over that time period," he said.
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