ITC can touch Rs 300: Rajesh Agarwal

Agarwal told CNBC-TV18, “Unless one is a long-term investor one should try booking profit in ITC because although the numbers were very good in the last quarter with around 26% jump in bottomline they have increased prices of some of their products like Sunfeast and some of the cigarettes but going forward with the kind of concerns on monsoon front and not to forget the valuation which is trading at a PE multiple of more than 30 I think its time to book some profit in FMCG stock and ITC being one of them.

He further added, “Buying more is not advisable at this point in time because although the numbers were good the company has a strong balance sheet of around 37,000 crore in cash with price hikes in some of the products which is going to add to the bottomline in the coming quarters also. But still the valuations are too high at 30 times and monsoons being a concern which is going to play a dampener in the very short-term. I think its time to book some profit if somebody is there or book some losses. Unless and until one is ready to hold this stock for a very long period of time maybe one-one-and-a-half year down the line where I think this stock can reach a level of Rs 300 but in the short-term I think some price correction is liable to happen.”