ITC Demerger: How You Could Make 10-12% Returns

Описание: ITC Share Price Today: On the final day to buy ITC shares before the record date, experts are weighing in on whether it’s worth investing, especially with the upcoming demerger of ITC Hotels. Amnish Aggarwal, Head of Research at Prabhudas Lilladher, shares his insights, noting that ITC Hotels, a profitable and second-largest player in India’s hotel industry, is expected to experience growth in the coming years. The travel industry’s positive outlook adds to its potential, with projections suggesting ITC Hotels could see revenues grow from ₹1,000 crore in FY24 to ₹1,400-1,500 crore in the next three years.

Amnish Aggarwal estimates that ITC Hotels shares could be valued between ₹175-₹200, but the demerger might reduce ITC’s target price by ₹15-₹20. While shareholders will receive one share of ITC Hotels for every ten ITC shares they own, the impact on ITC’s stock price is expected to be minimal—around a 4% reduction. Despite this, Amnish Aggarwal believes that long-term prospects remain strong, particularly with the possibility of an interim dividend and favorable budget developments. Investors may see a 10-12% return, assuming stable market conditions. However, the demerger’s tactical advantage may not result in significant gains due to the modest ratio of 1:10 for ITC Hotels shares.

#itc #itcdemerger #itchotels #itcsharenews

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