ITC, despite being the most attractively valued among the Nifty FMCG stocks, continues to underperform its peers as well as leading indices. In CY20 so far, the stock has lost 25 per cent against the Nifty FMCG index gaining 2 per cent, and a 5.3 per cent fall in the Nifty50 during the same period.
However, analysts say, it may have hit the trough and with the FMCG (non-cigarette) business gaining pace, operations in cigarettes near normal, and a high dividend yield, the stock is attractive.
A tax overhang and ESG (environmental, social and governance) concerns over cigarettes have.....
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