Anmish Aggarwal, the head of research of Prabhudas Lilladher has expressed the opinion that the listing of ITC Hotels will be a “positive for shareholders”. He has pointed out to the media that ITC, the Kolkata-headquartered salt-to-cigarettes major will retain a 40% stake in ITC Hotels post demerger. It will potentially bring down the sum of the parts (SOTP) valuation by Rs 15-17 per share, said Aggarwal. According to this expert, this will spell benefits for shareholders.
Aggarwal, as quoted in the media, has said that 3 events could shape the ITC stock. Besides the ITC Hotels demerger, these are the possibility of an interim dividend in mid-February and the upcoming Union Budget, which could end up changing excise duties. His opinion: if the government leaves excise duties unchanged, the stock could post double-digit returns. He also thought that there could be a potential gain of about Rs 20 (per share) from the listing of ITC Hotels.
Benefits to shareholders
As reported earlier, the ITC Hotels demerger could pave the way for benefits of Rs 1,500 crore for ITC Hotels. January 6, 2025 is the date when ITC has fixed the ex-date for awarding shares of ITC Hotels to current ITC shareholders. According to the demerger formula, for every 10 shares of ITC, a shareholder is entitled to get one share of ITC Hotel.
ITC share price movement
ICICI Securities has already issued an ADD call for ITC share. It had issued Rs 500 as the target price. This price was Rs 520 earlier. On January 1, 2025, ITC shares ended the day at Rs 484.70 INR, up Rs 1.05 (or 0.22%). It opened at Rs 486. The 52-week high and low levels for ITC is Rs 528.50 and Rs 399.35 respectively. The ITC Hotels’ revenue figure jumped 12% (year-on-year). It has an EBITA margin expansion of 20.8% during the same period.
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The head of research of Prabhudas Lilladher has told the media that ITC hotels listing will be a “positive for shareholders”. The Kolkata-headquartered conglomerate spun off its hospitality business ITC Hotels with effect from January 1, 2025. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
