For this year? Yes (in my opinion)! And here is my price prediction, banking over which I had held ITC with average buy price of Rs. 182 for the last two years-
In the recent annual report released by the company for 2021-22, it has mentioned how, "notwithstanding" all the challenges due to increased global inflation, relatively heavy taxation in India over legal cigarette industry, and reduced domestic demand for FMCG in rural India, it has been able to grow in almost all sectors it is present in. It also mentioned about the increased focus on paperboard packaging since the ban of single-use plastic with direct trouble to the traditional cigarette packing.
With an expected target price of Rs. 300-325, I had eyed on the stock for a very long time, making it the elephant stock of my collection. Now, sitting with a profit of around 66% in the chip, I am expecting a saturation with a margin of +/- 10%. With this, I can expect nothing more than a decent increase over years to come on my invested amount and regular, handsome dividend payouts, as has been the case over the past several years in this company. According to me, it is a good time to set eyes over the businesses with emerging opportunities in sectors like pharma, commercial paperboard manufacturing, EV, etc. As for the ITC, my heavyweight has played its part for now.
Comments