Best Indian Stocks to Invest – ITC
In Indian stock market, we have more than 5k companies listed and it is a tedious task to find the best Indian stocks to invest. So, how to find the best stocks to invest? Yes it is a tedious task that need huge effort and time. In order to find the best companies, my article, a guide with very important points would certainly help you.
Why invest in ITC stocks?
ITC is one of the best monopoly companies in India with variety of popular products, have huge acceptance among the public. It has a very good management in place and have a well diversified product portfolio.
I brought ITC shares long years back and it helped me to build wealth slowly and steadily through the bonuses and time to time dividends time. For me, ITC is an evergreen, wealth creator stock in my personal investment portfolio..
Business of ITC
ITC have a solid monopoly with 85% market shares in the cigarette business in India. In the FMCG space, they have a bunch of FMCG products starts from Aasirvad brand, Bingo varieties, Candiman chocolates, Classmate brand books, Sunfeast biscuits varieties, Yippee noodles, GumOn, Vivel soap, Engage deodorants and many more popular items! Find the image above to know more about their FMCG product in details.
ITC is Capable to Protect Your Portfolio
ITC shares are a kind of hedge or it have ability to protect our portfolio to a great extend. This is the reason most of the arbitrage mutual funds in India have invested on ITC shares and added to their portfolio. It is easy too predict and upward and downward price movement of ITC shares in a volatile market. Maximum to 250-280 level to top and minimum to 130-135 levels. It is a best buy when near to 145 rupees!
ITC shares are best hedge/arbitrage stock in the portfolio. It can protect loss from other stocks and this is the stock any investor can blindly invest and add to the portfolio at any time any price level mentioned above. Investors can start a stock SIP to buy ITC little by little with a long term perspective.
I have a handsome number of ITC stocks in my portfolio from long time and I never missed to buy whenever getting a chance to do so. Recently when it reached less than 140, I brought another set of ITC stocks to my stock investment portfolio.
Benefit of investing in ITC Shares
ITC help investors to build wealth in a variety of ways. ITC is the best example for compounding power, by give bonus shares as well as decent dividends regularly. This will increase the wealth of investors in the way of Dollar Cost Averaging or Rupee Cost Averaging.
What is Dollar Cost Averaging
Investopedia Says: Dollar-cost averaging (DCA) is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase. The purchases occur regardless of the asset’s price and at regular intervals.
Who should and shouldn’t buy ITC stocks?
ITC is not at all suitable for traders and investors with short time focus. It is a stock required to be in portfolio for long time to create wealth enormously. It is thus a perfect fit for only long term investors.
Buy ITC little by little and whenever the prices are affordable. You can even start SIP in stocks to buy ITC little by little as informed above. Even in the price of 200, investors have lots of room to buy this stock as it is a mandatory candidate in investment portfolio.
ITC investors never sell this stock because of it’s power of building wealth for long time. Buy it hold it and it will make you rich along with time!
Why ITC is one of the Best Stocks to Invest in India
Wihile checking the profit ratios you can find the performance of ITC business is excellent. It has a fantastic Free Cash Flow, comfortable EPS growth year to year, no debt, comfortable inventory turnover, ROcE and ROE is considerable etc…
Conclusion
As an investor, ITC is my favorite. At the very first, it met majority of the stock selection criterias as per my personal investment framework. I never miss any opportunity to invest on ITC and always advise my friends too to follow the same.