ITC has seen long sideways trading from the last year. But at present this share is giving a sharp upside bounce from the ending of last month onwards. The present value of ITC share is around 273 rupees which is comparatively higher than the price of 24th February which was 208 rupees. Most of the market experts believed that ITC has a strong bull trend with good support at the 255 rupees level.
If we talk about technical reasons for climbing to a new 52 week high, experts say that the ITC share price helped to break out at this level. There is a high probability that this share will go up to ₹300 levels in no time. They are also stating that the people who are holding stock can keep it in their portfolio for a long time.
Recently the Edelweiss Wealth Research report is giving a strong buying signal for this stock. They are expecting this stock to go up to ₹450 in the long term.
If we notice the fundamentals of this stock we also can notice the upward price rally. There are some reasons for it. We will discuss them one by one.
Though ITC has diversified their investments in different sectors, one of the most important sectors from which ITC earned most of their money is cigarettes. If we can believe the wealth research report, we can see significant growth in this industry.
There was an entire stock market crash at the time of the Russia and Ukraine war. But in the case of ITC the scenario is a little bit important. There was a surge of wheat export which benefited the ITC’s agri business sales.
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ITC is one of the leading FMCG brands of India. Thousands of daily commodities are produced by this company. At the pandemic consumption was very low among Indian households. But as the pandemic is getting over, people start spending money openly. This gave huge benefit to the ITC company which ultimately took the price so high.
After the pandemic, there will surely be a huge market surge of hotels. As we know ITC was one of the leading hotel chains in India. It will be highly benefitted from this. Experts are suggesting that there will be a huge 21 percent CAGR in the hotel business. Already a lot of hotels are getting a good amount of business. Investors of ITC are bullish about this sector which directly affects the ITC stock price.
They stated that the volume of cigarettes is going to revive after the pandemic. Present growth or CAGR of -1 percent is growing up to 5 percent positive growth rate this year.
They also stated that this value is going to go up to 12 CAGR in upcoming financial years.
So if you are owning ITC stocks, you need to hold it for a longer time. And if you are thinking of investing in it, you should wait for a little drop in price and accumulate as much as you can.