The FMCG giant ITC is in the spotlight following the much-anticipated demerger of ITC Hotels. With ITC Hotels soon to become a separately listed entity, the focus now shifts to standalone ITC and its valuation. How does the newly structured ITC at ₹455-₹555 look from an investment perspective? What valuation does Geojit Financial Services assign to ITC Hotels?
Gaurang Shah, Senior VP at Geojit Financial Services, shares his insights. He estimates the listing valuation of ITC Hotels to be in the range of ₹150-₹200 per share. For standalone ITC, he projects a potential valuation of ₹525-₹550. Gaurang Shah highlights that while the demerger of ITC Hotels has set a precedent, market speculation suggests the possibility of further demergers of ITC's other businesses. However, ITC's management has not yet confirmed this. Gaurang Shah remains optimistic about the growth prospects for both ITC standalone and ITC Hotels. This restructuring could unlock significant value for shareholders and position both entities for robust performance in the future.
Key Highlights:
1. ITC Hotels valuation expected to list between ₹150-₹200.
2. Standalone ITC projected to trade in the ₹525-₹550 range.
3. Potential for further demergers, though unconfirmed by ITC management.
4. Positive outlook on ITC’s restructuring strategy and its long-term potential.
Don’t miss out on expert insights—watch the full video to understand the post-demerger prospects of ITC and ITC Hotels!