Hold ITC for long term: Rajesh Agarwal

Hold ITC for long term, says Rajesh Agarwal, Head - Research, Eastern Financiers.

Agarwal told CNBC-TV18, "The investor can continue holding ITC. In the short-term though upside is capped because of the kind of run-up we have seen but in longer terms considering the fundamentals of ITC and the business verticals they are into. Cigarette business is going extremely well. Even the FMCG is growing well, losses are coming down. Hotels are doing well. So it is a very good long term hold for the stock. The cash balance in the balance sheet provides good liquidity to the company. It is definitely a hold for the longer term."

He further added, "When the investor has a 5 to 10 year view it has to be reviewed every six months or after a year of the performance of the company. Selling at extreme top is impossible for anybody or buying at a bottom is quite impossible, so one has to take a call based on the performance quarter to quarter every half yearly. At this point of time it looks very good to hold but one has to review after every year of performance. At this point of time we have a price target of around Rs 240-250 in the next 12 to 15 months."