ITC Hotels (ITCHL) emerges as a strong hotel stock post-demerger. Learn why this hospitality giant offers a lucrative investment opportunity in 2025.
Table of Contents
ITC Hotels | Why Should You Check Into This Hotel Stock? | Stock Of The Day
The demerger of the reputed conglomerate ITC’s hotel business into ITC Hotels Limited (ITCHL) provides investors with an opportunity to own a pure-play hotel business. With over a century of operations, ITCHL has established a robust brand and a strong, comprehensive product portfolio. The company has embraced an asset-light expansion strategy and is well-positioned to benefit from the hospitality industry’s upcycle. By driving new revenue streams and optimizing existing assets, ITCHL aims to enhance growth and improve return ratios.
ITC Hotels Share Price Update
In a significant development for ITC Hotels’ shareholders, the stock is set to exit as many as 22 BSE indices before trading commences on Wednesday, February 5, 2025. Shares of the demerged entity made their debut on Dalal Street on Wednesday, January 29, 2025.
The company’s stock was listed at Rs 180 per share on the NSE and Rs 188 on the BSE. At the time of listing, ITC Hotels commanded a market valuation of Rs 39,126.02 crore. However, its market capitalization has since declined to Rs 34,266.48 crore.
BSE Announcement and Impact on ITC Hotels Stock
BSE has announced a crucial update that could impact ITC Hotels’ stock movement. Effective prior to the opening of trading on Wednesday, February 5, 2025, ITC Hotels will be removed from all BSE indices, provided it did not hit the lower circuit on Tuesday, February 4, 2025, before 2 PM.
Since ITC Hotels’ share price did not hit the lower circuit by the cutoff time, it will be excluded from the following 22 BSE indices:
- BSE Sensex (30-share index)
- BSE 100
- BSE 200
- BSE 500
- BSE Fast Moving Consumer Goods
- BSE India Manufacturing Index
- BSE Allcap
- BSE Largecap
- BSE Sensex 50
- BSE Bharat 22 Index
- BSE 250 Largemidcap Index
- BSE Dividend Stability Index
- BSE Low Volatility Index
- BSE Quality Index
- BSE 100 Largecap TMC
- BSE Sensex Sixty
- BSE Sensex Sixty 65:35
- BSE India Sector Leaders
- BSE 200 Equal Weight
- BSE Sensex Equal Weight
- BSE Largemidcap
- BSE Sensex 50 TMC
ITC Hotels Stock Performance
On Tuesday, ITC Hotels’ stock closed over 4% lower at Rs 164.65 per share on the BSE.
ITC Hotels Q3 FY 2025 Financial Performance
Following its demerger from ITC Limited, ITC Hotels reported a net profit of Rs 74.35 lakh for the October-December 2024 quarter, up from Rs 41.68 lakh in the same period last year.
- Total Income: Rs 163.92 lakh (compared to Rs 160.27 lakh in the previous year’s corresponding period)
- Total Expenses: Rs 64.56 lakh (down from Rs 215.96 lakh in the year-ago quarter)
- Employee Benefits: Rs 50.92 lakh spent in Q3 FY 2025
Conclusion
The demerger of ITC Hotels from ITC Limited presents an attractive investment opportunity in a standalone hotel business with a well-established brand and strong growth potential. However, the recent exclusion from BSE indices and stock price fluctuations may impact investor sentiment in the short term. Investors should keep an eye on future earnings and expansion strategies to assess long-term growth prospects.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult with a financial advisor before making any investment decisions.
