ITC remains small storm shelter: VK Sharma, HDFC Securities

In a chat with ET Now, VK Sharma, Head of Business, Private Broking & Wealth Management, HDFC Securities, shares his views on ITC.

ET Now: Markets feel that ITC has some more room to surprise everyone on the upside. What is your take on that?

VK Sharma: The concerns on the excise duty hike have been laid aside and that was responsible for the kind of slide that we saw in case of ITC. It remains a small storm shelter and better than the other players in the sector. The larger segment in which ITC operates, it has the ability to price its products without any fear of reduction in demand. That is what makes ITC a better storm shelter in these times. However, investors do not need to go overboard on the stock and they can book timely profits here. Investors might see it rising 5-7%, but it is possible that the stock may come down 10% in coming few weeks. So, one has to be nimble-footed in terms of taking profits or remaining invested in ITC.