Hold ITC with long term view: Sharmila Joshi

Sharmila Joshi of sharmilajoshi.com told CNBC-TV18, "I don’t know after how many years we have seen actually tax rates being lower for ITC because otherwise Budget after Budget we have just seen taxes go up for the cigarette business. So, after maybe four or five years they have had a break of good news for them. Overall I think the way Goods and Services Tax (GST) is structured, it is supposed to be positive for other businesses that ITC is in as well."

"It the investors having reasonably long term view, I think one should stay put because a lot of the negatives are now slowly sort of getting sorted for ITC and you can expect growth from here. For me the real growth or the real reason to stay invested in ITC would be if their other businesses begin to do better, by that I mean their agricultural business, their food business because they have to look out of a way of diversifying out of the cigarette business. Up until now cigarette business is the single largest contributor to their revenue and this is going to be a business that is actually sort of going to be under threat."

"As I said, this was a lucky break for them that taxes were actually lowered, otherwise we never really see that happening. So, as I am saying, if one is having long term view then stays put, otherwise use the next bounce to sort of exit the stock," she added.