Sell ITC, says Nitin Mathur

Nitin Mathur, Consumer Research Analyst, Espirito Santo advice traders to sell ITC as it may slip to Rs 200.

Mathur told CNBC-TV18, “ITC, I am quite concerned about the volume growth in FY13, especially on the back of the fact that company has already taken 12% price increase to offset the excise duty increase in the Union Budget. So this additionally risks my volume growth assumptions for FY13 which is my primary concern.”
He further added, “ITC is a great business but the stock has run up quite a bit far from our fair value of Rs 200. So we remain nervous around such news flow on the stock and hence we maintain a sell rating on ITC. My fair value is Rs 200 and my assumptions for FY13 volume growth is minus 5%.”