ITC may have another 5-10% upside: JV Capital Services

In a chat with ET Now, Sajiv Dhawan, MD, JV Capital Services, shares his views on ITC.

ET Now: What are your thoughts on ITC? Do you think the IDFC report will have an impact on ITC as a stock?

Sajiv Dhawan: I doubt it, maybe some short term impact but there are enough smokers and they are not going to suddenly give up. We have seen that time and again. You see other countries abroad. They have much stronger advertising buzz on tobacco companies but unfortunately it is an addiction and I do not think that will have too much of an impact. The real impact on ITC will be the fact that price has risen so sharply.

Some of these stocks are defensive and maybe as the markets rally further, some money will shift out. We have already seen that some retail investors selling into the stock and they are quite happy. So maybe another 5-10% upside based on momentum but fundamentally the prices reflect the current fundamental value.