InvestorQ : I have bought ITC at Rs.260 & want a target for the year 2020?
Sneha Balasubramanian made post

I have bought ITC at Rs.260 & want a target for the year 2020?

Answer
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Anu Biswas answered.
4 weeks ago


Actually if you look at ITC, the stock looks very attractive even in dividend yield terms. In fact, ITC is paying dividend yield of over 5.5%, which is very attractive by historical terms. However, the stock has taken a big hit due to the lockdown which has banned the sale of tobacco products.

The other challenge for ITC is that the FMCG business is yet to prove itself against the other established names like HUL, Britannia and Colgate. Clearly, the brand extension has not worked too well for the stock.

I think it will take a huge effort for the stock to even get back to Rs.260. But you can look for some bounce although any major appreciation and profit is hard to project. You can look for a bounce to reduce your losses and exit the stock.