Consistent Compounder, Portfolio Stock looking to rise ITC.ITC Ltd. operates as a holding company, which engages in the manufacturing and trading of consumer products. It operates through the following segments: Fast Moving Consumer Goods (FMCG) Cigarettes; FMCG Others; Hotels; Paperboards, Paper and Packaging, and Agri Business. The FMCG Cigarettes segment markets and sells tobacco and cigars. The FMCG Others segment distributes packaged foods, clothes, school and office supplies, safety matched, agarbattis, and personal care products.
The Hotels segment manages and operates hotel and restaurant chains. The Paperboards, Paper and Packaging segment produces and supplies specialty boards, graphic boards, and printing papers. The Agri Business segment exports feed ingredients, food grains, processed fruits, coffee, and seafood. There is an active news of demerger of FMCG and Hotel business which can be favorable for the stock.
It is a high Dividend yield stock with dividend yield at CMP being 3.6%. CMP of the stock is Rs. 433.4. The Negative aspects of the company are high valuation PE(26.4). Positive aspects of the company are strong cash flow from operations, MFs and FIIs increasing stake, growth in revenue and profits and Its being a company with Low Debt.
Entry can be taken after closing above 437. Targets in the stock will be 446, 453 and 465. Closing above 466 will activate long term targets of 471, 490 and 499+. Stop loss in the stock should be maintained at Closing below 424 or 400 depending on your risk taking ability.
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