I have been following ITC share for almost a year. In the last year or so almost every stock has given good returns except ITC. But now in a week's time, it is up by 12%.
PC: MoneyControl.com
As you can in the above chart that ITC was in a constant range of around 200 for quite some time. Recently it started showing some sign of recovery by posting a new 52 week high. But the good thing about ITC is that it always gives a nice dividend and thus people looking for some dividend can always invest in this stock. In the last year, it has given a dividend of Rs 10.5 and given the price it had it was a good buy.
Since it's breaking out what will be the next course of direction for ITC? If we compare ITC with other FMGC shares over a period of 1 year then ITC was a very poor performer but again that can be because ITC's FMGC business is still growing and the revenues are dependent on the tobacco business mainly. That's why we cannot tell that it is purely an FMGC share.
With the GST council not making any change of the cess, we can see more upward movement of the stock and the stock can touch 300 in some time. Though I am just speculating for it who knows about the future. Though I do not have much share of ITC still I have some to enjoy the rally.
People have started making fun of the movement already because people consider it as an elephant that rarely breaks out. So for many investors including me, it was a surprise move but we are enjoying the rally.