Hold ITC, says Mayuresh Joshi

Mayuresh Joshi, VP- Institution of Angel Broking told CNBC-TV18, "On SBI, the levels are a little bit difficult to comprehend but again systematic investment over the next two-three months and any declines that you probably see up to Rs 280-270 on the stock becomes a good opportunity. So stick on or hold on to that stock. Levels of Rs 350 over the next one year on SBI are not ruled out.”

He further added, “For ITC, the kind of excise duty hikes that you have probably seen both on the sub 64 mm and the other categories as well, that is going to have a huge amount of dent at least on the volume growth but again the price increases will be passed through and looking at the inelasticity of demand that the cigarette business probably commands, you are not going to see a huge amount of dent at least in terms of topline numbers. So even though you will see volume growth probably degrowing on a quarter-on-quarter (Q-o-Q) and a year-on-year (Y-o-Y) basis, the price hikes will ensure that the topline is maintained.”

“The other business for ITC is probably the fast moving consumer goods (FMCG) just might start contributing significantly. The hotel business though a small proportion probably in terms of the bottomline contribution soon will start contributing meaningfully over the next few quarters. So we have not changed our estimates probably on ITC, so the investors can hold on to the stock but probably one will have to elongate the time horizon to 18 months to 24 months,” he said.