ITC remains a value creator for investors, will bounce back from lows: Jagdish Malkani, Member, NSE & BSE

In a chat with ET Now, Jagdish Malkani, Member, NSE & BSE, shares his views on ITC.

ET Now: Today ITC has fallen 6.5 per cent. It is the biggest lost for the last 9 to 10 months for a heavyweight like ITC. What is the call on the stock, the impact that it can have as a result of a potential shift in duty or tax and how would you look at ITC as an investment candidate?

Jagdish Malkani: I do believe, moral issues aside about lung cancer, etc, it is an absolutely great stock. It has been dependable value creator over the years. The way it shifted emphasis to other FMCG categories and hotels, it needs to be lauded. In run up to the budget and over the weekend the health minister’s pronouncements and other issues have really sent it to the cleaners today. But I have every confidence that akin to what you rightly said about previous years, it will come back with a bang and that Rs 385; it was Rs 380 or thereabouts on 16th of May when this new government came in. So it has taken a pounding, maybe there is some more blood to flow. But it is a great stock, great value creator and it will be back in the runs sooner rather than later.