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ITC: Book Profits 

The likely moderation in tobacco business growth and forays into less profitable categories are the primary reasons to exit the stock at these valuations.

Building a brand reputation in the personal products business may entail high spending.

Investors can consider booking profits in ITC shares, as the stock valuations (30 times trailing earnings, at Rs 254) seem to have outpaced the medium-term growth prospects. Forays into businesses less profitable than the core tobacco business and the likely moderation in growth rates for tobacco are the primary reasons for the recommendation.

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