Infosys is providing a good entry point from a long-term perspective while FMCG-hotel-cigarettes major ITC is still an undervalued stock, Ajay Srivastava, CEO of Dimensions Corporate Finance Services, said on Thursday.

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“It's very good for a long-term investor who wants to just retire and put the money away and keep adding on. The reason being simple; they give dividends, buybacks, they give whatever they need to reward the shareholders,” Srivastava told CNBC-TV18.

On Infosys' underperformance this year, Srivastava said the scrip has huge foreign ownership.

"It does not matter the fundamental of Infosys because it will get dictated by what the FIIs do overseas; if they are selling in the US market, they are selling in the Indian market, they will sell IT no matter what the company can talk about the fundamental, it does not matter to them. It's an industry sale proposition," said Srivastava.

ITC is still an undervalued stock, Srivastava said.

“A large part of ITC generates a serious amount of cash flows. And if interest rates start to rise their treasury income will go up and that is like a goldmine sitting there.”

Also Read: ITC's six brands already in the Rs 1,000 crore club, says Sanjiv Puri

If the ITC management is precise in an intent to structure it correctly then investors can get a good ride, he said while adding that the ITC stock had a rough time for over a decade and now is the time that it starts to deliver results.

On Thursday, Infosys stock price was trading at Rs 1,370.75 on BSE at 11.52 am, down 0.42 percent. The IT stock has corrected 28 percent so far this year. Meanwhile, ITC stock price surged to Rs 345.40 on BSE, up more than 1.2 percent.

Also Read: Infosys shares rise on hopes IT major will deliver on annual guidance

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(Edited by : Ajay Vaishnav)