Stocks to watch this week: A host of stocks would be in focus this week on account of corporate actions and quarterly earnings. SBI, Berger Paints, ZEEL, ITC, BHEL, Karur Vysya Bank, M&M & Lloyds Metals are among stocks to watch this week (August 7-11).
The demerger of ITC’s Hotel business spoiled the party of the ITC stock rally which has taken the stock up 70% in the past one year. So, what was it about the demerger that irked the investors? Is it simply a buy on buzz and sell on rally or are shareholders feeling short-changed with the scheme? Why is ITC still holding 40% in the demerged entity? In this episode of The Morning Brief podcast, host Kiran Somvanshi delves into the ITC demerger seeking answers from Dipak Haksar the former CEO of ITC Hotels and Manu Rishi Guptha, CEO and Founder - MRG Capital - SEBI Registered PMS who has made headlines with his critique of the cigarette king .
The world s largest tobacco company, British American Tobacco (BAT) which owns 29% stake in ITC, would end up owning about 17.4% stake in ITC Hotels after the demerger. It is being speculated that BAT may have little interest in owning a hospitality stock in its portfolio.
As a standalone company, the hotels business should command a similar valuation to that of the leading listed hotels firm, Indian Hotels, and the combined value of the two entities will likely exceed ITC’s current market cap