ITC’s share price fell by 3.89% on Monday, July 24, after the company announced the demerger of its hotel business. The stock closed at Rs 471.35, down from its previous close of Rs 492.15.
The demerger is expected to create a more focused and agile FMCG business, with a stronger balance sheet. However, some investors are disappointed that ITC will retain a 40% stake in the new hotel subsidiary. They believe that this is only a partial value unlocking for the parent company.
Despite the recent decline, ITC’s share price is still up by over 145% in the past three years. The company is well-positioned to benefit from the growth of the Indian economy and the rising demand for its products.
Analysts’ Outlook on ITC Share Price
Analysts at ICICI Securities have a “buy” rating on ITC’s stock, with a target price of Rs 560. They believe that the demerger will unlock value for shareholders and that the company is well-positioned to grow in the future.
Analysts at Morgan Stanley have a “hold” rating on ITC’s stock, with a target price of Rs 490. They believe that the demerger is a positive development for the company, but that the stock is already trading at a premium valuation.
What does the Future Hold for ITC Share Price?
It is difficult to say with certainty what the future holds for ITC’s share price. However, the company is well-positioned to benefit from the growth of the Indian economy and the rising demand for its products. The demerger of the hotel business is also expected to create a more focused and agile FMCG business, with a stronger balance sheet.
Overall, ITC’s share price looks attractively valued at current levels. Investors who are looking for a long-term investment in a well-managed company with a strong track record of growth should consider adding ITC to their portfolio.