ITC Share Price: BIG demerger impact! Check what market experts say on this rally
ITC share price history suggests it has been trading in the range of Rs 200 to Rs 210, but after a month at this level, it has finally, surged more than 2.5 per cent to Rs 213.40 levels today.
ITC share price history suggests it has been trading in the range of Rs 200 to Rs 210, but after a month at this level, it has finally, surged more than 2.5 per cent to Rs 213.40 levels today. According to stock market experts, this rise in ITC share price is due to the newsbreak of the likely demerger of ITC companies into tobacco, FMCG and hotels. They said that the ITC shares may hit Rs 220 target in immediate terms while in the medium-term, it may go up to Rs 235 to Rs 240.
Speaking on the reason for rise in ITC share price, Mudit Goel, Senior Research Analyst at SMC said, "ITC share price is skyrocketing on talks of the demerger of its FMCG, hotel and Infotech business. Big demerger of ITC is on cards and three companies will be formed after the demerger, sources aware about the development." Goel went on to add that ITC shares have strong support at Rs 203 and it can immediately hit Rs 220 target and once it breaks this level, one can witness Rs 235 to Rs 240 in the medium-term time horizon. However, he maintained that the demerger of the ITC companies will take time.
WATCH | Click on Zee Business Live TV Streaming Below:
Asked about ITC share price target for 2021, Sumeet Bagadia, Executive Director, Choice Broking said, "ITC share price has made a strong breakout by sustaining above Rs 200 levels. It has strong resistance at Rs 220 but once it breaks this resistance, the counter will soon hit Rs 230 to Rs 250 levels."
Rohit Singre, Senior Technical Research Analyst at LKP Securities said, "ITC share price has positive bias till it is above Rs 200. Since, it has managed to sustain above Rs 200 for more than four trade sessions, this is one of the shares to buy for an immediate target of Rs 220."
The ITC demerger will unlock bigger value for the company. According to the Zee Business sources, the board of directors of ITC would decide on demerger in April 2021 and investment bankers have started their work on demerger. Paper, textiles, cigarette and FMCG will be a part of the flagship company. Besides, ITC in its reply to Zee Business query regarding the demerger said, we will not comment on the demerger and the company will continuously create value creation for all stakeholders.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.