The share price of ITC is going through a sell-off phase after the announcement of the final dividend of Rs. 6.25 per share for the financial year 2021-22. ITC share price today opened with a gap of almost below 4.50 per share and went to intraday low of At 263.85 levels, logging in with a decline of 2.75 per cent in morning deals. ITC shares have almost fallen in the last one week from 281 265, descending close to 5.50 per cent in this period. However, stock market experts are seeing this fall as an opportunity to buy and accumulate ITC shares for the long term. They’re Expecting This Dividend Paying Stock To Go Up 340 per share level over the next 12 months.
to speak on ITC share price Ravi Singhal, Vice Chairman, Outlook, GCL Securities said, “ITC is a diversified company which has been on the sidelines for a long time due to the COVID restrictions. However, the unlocked theme is now going to propel the stock and the stock has taken a beating to come out. Indications of consolidation after giving breakout above 252 level based on closing in recent sessions. Hence, one should accumulate ITC shares while maintaining the stop loss 244 target for 12 months from 320 340 levels.”
For new investors who are looking to buy ITC for long term, Ravi Singhal of GCL Securities said, “One can buy ITC shares at current levels by maintaining stop loss. for the 12 month target of 244 from 320 340 each level.”
However, Edelweiss Wealth believes that ITC’s share price may rise The stock has come out of the consolidation phase as the 450 level in the longer term.
Fundamentals that could fuel the ITC share price rally; Edelweiss Wealth Research report says, “We expect cigarette volumes to revive at a CAGR of 5 per cent during FY 2011-21 as against a CAGR of 1 per cent during FY 2011-21; FMCG’s EBITDA margin high will increase to single digits; and to revive the business of hotel, paperboard and agri-commodities. This will lead to an income CAGR of 12 per cent in FY 2012-24E as against only 7 per cent in the last five years.”
In its advice to positional investors with regard to ITC shares, the Edelweiss Wealth Research report recommends stock market investors to buy ITC shares at current levels for a long-term goal. maintain stop loss at 450 220 each level.
ITC shares have recently become ex-dividend. About a week ago, it informed about the recommendation of dividend, “The Board in its meeting held on May 18, 2022 recommended a final dividend of Rs.6.25 per ordinary share for the financial year ended March 31. 1/- each. , 2022, subject to its declaration by the members at the 111th Annual General Meeting (AGM) of the Company held on Wednesday, the 20th July, 2022, the final dividend, if declared, to be paid between Friday, 22nd July, 2022 and to its entitled members on Tuesday, 26th July, 2022. The above final dividend is in addition to the interim dividend of Rs.5.25 per ordinary share declared by the Board on 3rd February, 2022.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.