ITC Shares Jump 8% After Large Trades
Shares of ITC Ltd. jumped as much as 8% after multiple large trades.
More than 56.8 lakh shares of the Kolkata-based cigarette maker exchanged hands in 14 large trades, according to Bloomberg data. This includes 17 lakh shares in single trade. The deals took place between Rs 218.2 and Rs 232.4 apiece, aggregating to nearly Rs 128.5 crore.
According to B&K Securities, all of ITC’s businesses were showing “favourable tailwinds” in their recovery from the pandemic and that a rerating is “around the corner”.
“The stock trades at an FY22E estimated dividend yield of 5.5%, higher than most fixed income instruments today, so downside below Rs 200 is ruled out,” the brokerage said in a note.
The company, B&K Securities said, has upside from restructuring in the hotels business and listing of its IT business, among others, which can be a boost in the intermediate term for the stock. “We feel the time has come for the stock to perform with tailwinds ahead, and reiterate our buy recommendation with a target price of Rs 266.”
Of the 38 analysts tracking ITC, 28 have a ‘buy’ rating, nine suggest a ‘hold’ and one recommends a ‘sell’, according to Bloomberg data. The average of the 12-month consensus price targets implies a downside of 10%.