Despite big corporate tax cut gains, ITC’s stock has not fired up enough
News flow on the potential sale of an 8% govt stake in ITC held by SUUTI has weighed on sentiments, say analysts
Sure, the tax cut gives ITC room to delay price hikes and that may prove helpful
ITC Ltd, whose mainstay is the cigarettes business, has been one of the biggest beneficiaries of the cut in corporate tax rates. Since the tax rates were slashed, the stock is up 7%. But investors want more. That’s because, despite the recent appreciation in the share price, the ITC stock has lagged so far in FY20. For perspective: ITC shares declined as much as 15% compared to the flattish performance of the Nifty 50 index in the current fiscal year.