Centrum Broking: ITC Will Continue To Outperform The Sector
A group of cigarettes sit arranged for a photograph. (Photographer Jason Alden/Bloomberg)

Centrum Broking: ITC Will Continue To Outperform The Sector

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Centrum Broking Report

Notwithstanding improving business performance ITC Ltd. went through painful price underperformance and high disbelief on the street regarding its food business, which prompted us to initiate ITC as our ‘Lionheart Series’ stock in September 2020.

It had all the right ingredients for our ‘Lionheart series’ i.e. cigarette business with strong moat (cashcow), high free cash flow among fast moving consumer goods peers, yet high disbelief on its diversification and huge valuation discount to its peers.

In our deep dive analysis into ITC’s foods business we conclude that it is at the cusp of a take-off both in terms of top-line and margins, hitherto concerns on cigarette business are overdone.

Click on the attachment to read the full report:

Centrum Broking ITC Company Update.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.