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 .
Bad monsoons and an increase in commodity prices could hamper the current rally in India s markets while US and European growth declines and inflation remains outside the target range may also restrict market gains, MRG Capital s CEO Manu Rishi Guptha said. Meanwhile, a decline, if any, could be set off by geopolitical factors outside anyone s control.
The ‘adjusted profitability’ story seems to be making fund managers positive on some new-age stocks. Paytm reported its first-ever adjusted EBITDA profitability in December 2022 and Zomato (ex- Blinkit) turned adjusted EBITDA positive in January 2023
Stock: ITC
This ridiculous recommendation was obviously not serious, but in jest. Though, it was just one of those memes running around in the financial circles, exploiting the fact that the share price of ITC has not moved much from Rs 200 level in the last one-and-a-half year.
The underperformance of the stock vis-à-vis its peers has generated some scathing criticism from the likes of fund manager Manu Rishi Guptha (which also elicited Rs 100 crore defamation lawsuit from ITC), at the same time became the butt of harmless jokes on the Internet.
Notwithstanding all these, data suggests the stock was among the most favourite investment for retail investors among all 50 Nifty stocks during the June quarter.