ITC numbers don’t give you any confidence that you need to latch on to it right now, market expert Prakash Diwan said. The stock has been a surprise underperformer in the FMCG pack, which has a had a superb run over the last few months.

“ITC will continue to disappoint even now in terms of price action. Overall the package still remains a bit complex for people to start giving it a multiple,” he said.

Speaking about tyre stocks Diwan said, “Balkrishna Industries has run up in anticipation of good numbers and it has delivered. If you see the management guidance they have taken advantage of the dispersion in the raw materials sourcing arrangement and that has added to margins. If these margins sustain even for 1-2 quarters you are talking about a very different EPS growth from where it has been traditionally. But things seems to be looking up for this company but I would buy it on dips.”

On real estate Diwan said, “I would stick to largecap in the real estate side, it would still be a Godrej Properties or a DLF.”

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(Edited by : Santosh Nair)

First Published:Nov 9, 2020 10:21 AM IST