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Why ITC Stock will earn Profit: 4 Reasons to Explore

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What is ITC Stock performance till now?

I TC has consistently delivered increasing dividends. For its shareholders and increasing profits for the traders who have gambled on the growth of the company. In the past few years, the ITC has shown an increase. Margin. And a consistent sales figure to its investors. Therefore, it is not a surprise that the share. The share price of the ITC is genuinely and consistently rising throughout the year.

However, as of now, the investors are thinking. Thinking twice before making eye investments in ITC as they are not sure that ITC weather, whether ITC can deliver more profits to them or not. Moreover, it is. It is assumed that ITC is. It reached its saturation level. But here are the reason that you should know before. The green is on the point.

Why ITC Stock will see a price hike in the future?

Quarterly Results

If you take a look at quarterly results. It is not an open secret. It will not take a rocket scientist to observe the increasing net profit of the company.

Because the majority of the revenue is derived from tobacco, where the demand is inelastic, therefore a base-level profit is guaranteed, which will not invest a disaster.

The margin of the ITC

Another reason OPM(Operating Profit Margin) of ITC, isn’t at its optimum;m level. How? If you observe the chart before March 2021 the OPM % was 38 to 39 percent, however, from March 2021, the OPM has shrunk to 34 to 35 percent, indicating a potential for improvement.

In the future, if OPM goes back to its average then the pace in stock prices will be observed.

The PE ratio of ITC

Like the previous factor, the case with the PE ratio is identical, the average PE ratio for a decade was around 35 but after the pandemic, it shrinks below 30, and as of now it hangs around 30. Again making stocks lucrative for further improvement.

Demerger of ITC

The Fourth and major reason to buy the stocks would be the demerger possibility of a demerger. The CMO of the ITC company Sanjiv Puri has repeatedly talked about the demerger of the company with astonishing consistency.

Therefore, taking that into account the stock prices of the company are undervalued.

ITC stocks and your goals

Now, whether these factors will affect your decision for the stock to buy sell, or hold depends on your end goal and expectation from the stock.

For Short Terms

In the case of the short term, the best strategy for gaining profit from the ITC short-term stocks would be the strategy of the Buy on Dips, and the profit of 10 to 20 percent should be the ideal scenario to sell the stocks because any more than that isn’t coming in foreseeable foute of majority.

Already Owner

In the case of the owners, if you are already the owner of the stocks then your buying price matters, if your buying price is <400 Rs. then holding the stock can still deliver you a profit greater than that then selling is better as the peak prices as of now aren’t going more than in 450 Rs.

If you are looking for trustable online brokers to trade for the ITC stock, discover them AngelOne, Upstox, Zerodha, Paytm money, and Groww.

If you are hey, thinking of. Trading in. In stocks, but as an NRI you need to go through this article “Best Demat Account for NRIs in India – Which Type of Demat Account in India is Better for NRIs?”

Why ITC Stock will earn Profit: 4 Reasons to Explore


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