Section 1: Company Overview and Fundamentals

1.1 Company Overview:

British American Tobacco PLC (NYSE: BTI) is a consumer-centric, multi-category consumer goods company that provides tobacco and nicotine products. Its segments include the United States, Asia Pacific Middle East and Africa, Americas and Europe. The Company’s product categories include Vapor, Tobacco Heating Products (THPs), Modern Oral, Traditional Oral and Combustible cigarettes.

Kalkine’s Diversified Opportunities Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Stock Performance:

• The stock has corrected by 10.28% in the last six months as well as by 15.48% in past nine months.
• The stock is leaning towards the lower band of its 52-week range of USD 38.90 and 52-week low price of USD 28.35, with the current price inside a decent support area of around USD 28-USD 30.
• The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 43.99.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Top 10 shareholders:

The top 10 shareholders together form ~13.63% of the total shareholding, signifying diverse shareholding. Spring Mountain Investments, Ltd., and Capital International Investors are the biggest shareholders, holding the maximum stake in the company at ~10.48% and ~1.00%, respectively.

Section 2: Business Updates and Corporate Business Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

 2.2 Insights of FY23:

Section 3: Key Risks & Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Stock Performance:

• The stock has corrected by 10.28% in the last six months as well as by 15.48% in past nine months.
• The stock is leaning towards the lower band of its 52-week range of USD 38.90 and 52-week low price of USD 28.35, with the current price inside a decent support area of around USD 28-USD 30.
• The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 43.99.

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 07, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.