I purchased ITC AT 180 RUPEES MAY I KEEP THIS OR SELL?

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by Manjunath Magadum, May 13, 2020.

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  1. Manjunath Magadum

    Manjunath Magadum New Member

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    Please help me regarding itc
     
    Manjunath Magadum, May 13, 2020
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  2. Michael Gonsalves

    Michael Gonsalves Member Staff Member

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    I advice that the stock be retained in the portfolio. ITC has a number of diversified businesses such as Hotels, FMCG etc which will do well when the economy normalizes.

    Also, the stock is quoting at the lowest possible valuations which makes the risk-reward attractive.

    The Company also pays a dividend yield of nearly 10% which means that you will lose not much while waiting for the stock price to recover.
     
    Michael Gonsalves, May 14, 2020
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  3. Manjunath Magadum

    Manjunath Magadum New Member

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    Thank you
     
    Manjunath Magadum, May 14, 2020
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  4. RKD

    RKD New Member

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    ITC is a great company in terms of quality but I am not sure it is a great investment. The cigarettes business is almost finished. Nobody will dare to smoke even after the CoronaVirus is over. The Hotel industry is witnessing a recession which may take several years to be resolved. The FMCG business is hyper-competitive with a large number of deep pocketed players like Nestle, HUL, Dabur etc.

    It is much better if you can shift to some other high-quality mid-cap or small-cap stock.

    E.g. Amara Raja is a good bet because it is a duopoly in the automobile batteries business.

    If you have the risk-taking ability, you can also consider investing small sums in a basket of penny stocks like GVK Power, Urja Global, Sanwaria Consumer etc.
     
    RKD, May 17, 2020
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