Date: 12 Oct 2020
Interesting setup in ITC . Today's price has broken the falling trendline and most important point to note is that the breakout is 3 times than the avg . in the last 40 days. The only concern is that today's couldn't give breakout above the 20 . However, since Covid, whenever in ITC has gone past 40 levels, the stock has given a good 15% - 25% price appreciation. Also, the current PCR level is 0.45 which is a good sign for price reversal. Strong conviction will come if stock is able to hold the current levels and go past 175 with good volumes. Considering festive season is round the corner and the stock has already got beaten down so much I think the stock can go upto 200-210 levels.
I will be closely watching the stock this festive season.
T1-180. T2-190, T3-200; SL-160. Trail the stop loss by every 10 points once it starts achieving its target levels.
Duration 1.5 months. ( 30 Nov 2020)
1. Many good companies have their sales figures <20% of their market cap. That does not mean in any way that it's a negative point because SALES has nothing to do with market cap. Other examples are TCS.
2. Promoter holding is zero because it is a professionally managed company. Other examples are Larsen & Toubro.
3. Liability holds 64,000 Crs. as Reserves and the debt and other liabilities are peanuts in comparison to the strength of the assets.
Adding more to it, the company has the most FCF in the all the FMCG peers. Plus NPM% is more than 20% of the revenue with all the Liquidity, Solvency and Performance ratios intact.
READ AGAIN. And take out some time to read how to analyze financial statements.
thank you very much for giving me additional points where i can work upon to read & analyse financial statements.
can you you give me any probable reason for falling of ITC share to this extent.
thank you once again.
Also, Govt. of India thru LIC/UTI etc holds big junk