ITC shares gained over 1 percent to Rs 434 apiece on June 6 after shareholders approved demerger of the conglomerate's hotel business. Around 99.6 percent shareholders voted in favour of demerger, while just 0.4 percent voted against it, ITC said in a stock exchange filing.
So far this year, shares of ITC declined over 5 percent, underperforming 4 percent rise in the benchmark Nifty 50 index. Earlier, ITC had hit 52-week high of Rs 499 per share on July 24, 2023.
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"The resolution for approval of scheme of arrangement amongst ITC and ITC Hotels and their respective shareholders and creditors passed notice dated April 30, 2024 through remote e-voting and e-voting," ITC said in an exchange filing.
In the January-March quarter (Q4FY24), ITC saw net profit decline 1.31 percent year-on-year (YoY) to Rs 5,020 crore, while revenue rose modestly by 1.4 percent YoY to Rs 17,752 crore.
ALSO READ: ITC Q4 results: Net profit falls 1.3% to Rs 5,020 crore, final dividend declared
The company recommended a final dividend of Rs 7.50 per ordinary share for the financial year ending March 31, 2024.
ITC's hotels segment achieved record high revenue and profits during the quarter, supported by strong RevPar growth from retail, MICE, and marquee events. Segment revenue grew 15.6 percent YoY to Rs 2,989 crore in Q4FY24 and EBITDA was up 26.2 percent YoY to Rs 1,049 crore.
Following its Q4 results, analysts at Centrum shared a 'buy' rating for ITC with a target price of Rs 536 per share. "With value unlocking in hotel demerger, we expect investor’s focus to shift on core fundamentals of the business such as growth momentum and margin trajectory," the brokerage firm said.
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