At 10:38 am, ITC was quoting at Rs 202.75, down Rs 9.85, or 4.63%. It has touched an intraday high of Rs 213 and an intraday low of Rs 198.80.
It was trading with volumes of 330,246 shares. On Friday the share closed down 2.07% or Rs 4.50 at Rs 212.60.
VVLN Shastri of Firstcall India Equity Advisor is of the view that one can hold ITC at current level.
Shastri told CNBC-TV18, "As in when you find a shift in terms of portfolios from the largecaps to midcaps and smallcap, the FMCG also used to find defensive buying and its even finding that kind of buying for the past two days. I think this trend may continue for a while, so long as we find the shift to midcap and smallcap and till the largecap rally comes back. So to that extent the rally that we are finding in the FMCG pack mostly in the ITC is due to the portfolio shifts and defensive buying that is coming in."
He further added, "On the performance wise though ITC has been delivering a constant growth rate of about of 17% on YoY basis and about 16% on profit front on YoY basis. But I think it will be in a position to sustain those growth rates, but at those growth rates forward earnings multiple its quoting at Rs 35 though in the FMCG pack this looks slightly attractive but the kind of appreciation from this counter can be expected is momentary and one needs to take a call as in when there’s a shift again comes in terms of portfolios, which quickly books profits and take gains."
"Based on the markets one should look at this counter and look for booking profits at higher levels. So at this point of time definitely a hold but as in when the shift takes place one should look for booking profits in it."
Disclosure: Analyst doesn't hold the above stock.
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