Buy ITC shares, ITC Hotels demerger positive, says Centrum; here’s target price
Centrum Broking has retained its ‘Buy’ rating on ITC Ltd as the demerger of ITC Hotels get effective from January 1. It noted that the reorganisation would ensure continued interest of ITC in hospitality business with a sharper focus and optimal cost structure, banking on its brand equity and goodwill.
ITC holds 140 properties with 13,000-plus keys (45 per cent owned) across 90-plus locations under six brands in luxury, premium & budget segments. Its management aims to reach 200-plus hotels and 18,000 keys (35 per cent owned) by CY30. We expect 13.8 per cent revenue CAGR over FY24-27E with an Ebitda margin of 35 per cent led by strong growth in domestic demand for the hospitality sector.
“The demerger will help the new entity in…
