Stocks to Buy: ITC enjoys a love-hate relationship with investors; here is why in this special Valentine's Day 'Love Me or Hate Me' report

ITC Ltd is a stock that has been in a love-hate relationship for investors. On this valentine's day, Zee Business' research team brings an interesting take on this love-hate relationship. Senior Research Analyst Varun Dubey tells why he loves this stock while Kushal Gupta tells why he does not like this stock.

ITC is a monopoly player in the cigarette business. It has also dispelled this notion from time-to-time that if the prices are increased, the volumes will go down. It has proved time and again that no matter how much the prices go up or taxes are levied, the growth is there and will be there in future as well, Dubey said. This is the reason for love.

Meanwhile, Gupta said that there is perpetual fear of a sin tax and that is looked in budget documents every year. This has been the biggest issue for many years now. This is one of the sour points for investors regarding this stock. He also added that it is a very slow mover and has not moved much lately despite many positive news. 

Dubey said that ITC is also focusing on other segments as well including FMCG sector, hotel, and agriculture, which may lead to good results for the company. 

Gupta said that nearly 40 per cent of the total revenue of the company comes from the business of tobacco which is a great area of concern. No real benefits will visible until the value unlocking happens. He further said that the company has till now not given any clarity about this.

Dubey, in ITC's defence said that the value unlocking issue is being discounted by investors. He said that the cigarette business will be segregated from other businesses sooner or later. And whn its business are segregated, it will be realised that the SOTP (Sum-of-the-parts) will not be less than Rs 1000 for the share.   

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इस #ValentinesDay पर किस शेयर से LOVE करने का अच्छा मौका?
कौनसा शेयर है HATE ME का दावेदार?#ITC के साथ क्या करें; LOVE या HATE?
देखिए कुशल गुप्ता और वरुण दुबे की जुगलबंदी में...#ZeeBusiness LIVEhttps://t.co/QTsT7fZ0ea@KushalGupta44 @VarunDubey85 @Neha_1007 pic.twitter.com/2frSf3sGCX

— Zee Business (@ZeeBusiness) February 14, 2022