ITC is up 60% in one year amid a flat market. Should you invest in the stock now?

ITC is up 60% in one year amid a flat market. Should you invest in the stock now?


Image courtesy: ITC website

Synopsis

ITC has outperformed the benchmark indices. Seen as a classic value stock two years ago, fund managers feel it is now fully priced in. They believe that going ahead, the company will look at FMCG as the main growth engine and reduce dependence on cigarettes. And all these are now reflected in the price. Will the stock maintain its momentum?

Rajeev Thakkar, CIO of PPFAS Mutual Fund, started to look at ITC seriously in the beginning of 2020. He first purchased the stock in March 2020 at an average price of INR140. His logic was simple. Stocks with extended periods of time, where they have corrected due to high valuation or experienced low growth, tend to have a good comeback. He had seen this in HUL earlier when it had hit a bad patch between 2000 and 2007. This was when the Indian

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Author: Shirley