Latest news with #ITCLtd
Business Standard
10-06-2025
- Business
- Business Standard
ITC Ltd spurts 0.9%, up for fifth straight session
ITC Ltd is quoting at Rs 426.85, up 0.9% on the day as on 12:44 IST on the NSE. The stock is up 4.21% in last one year as compared to a 8.04% jump in NIFTY and a 2.68% jump in the Nifty FMCG. ITC Ltd gained for a fifth straight session today. The stock is quoting at Rs 426.85, up 0.9% on the day as on 12:44 IST on the NSE. The benchmark NIFTY is up around 0.13% on the day, quoting at 25136.5. The Sensex is at 82493.19, up 0.06%. ITC Ltd has slipped around 1.99% in last one month. Meanwhile, Nifty FMCG index of which ITC Ltd is a constituent, has slipped around 1.5% in last one month and is currently quoting at 56026.1, up 0.39% on the day. The volume in the stock stood at 52.72 lakh shares today, compared to the daily average of 348.45 lakh shares in last one month. The benchmark June futures contract for the stock is quoting at Rs 427.7, up 0.86% on the day. ITC Ltd is up 4.21% in last one year as compared to a 8.04% jump in NIFTY and a 2.68% jump in the Nifty FMCG index. The PE of the stock is 26.88 based on TTM earnings ending March 25.
Mint
05-06-2025
- Business
- Mint
ITC Hotels soared 30% from its low. Is it still a hidden gem?
Why are hotel stocks in India riding a wave of success? The answer isn't too complicated. The Indian economy is thriving. People have more money to spend. Travel within the country keeps growing, and global tourism is bouncing back stronger than ever. These shifts have boosted the hospitality industry, pushing up bookings and earnings for hotel chains. Let's dive into ITC Hotels today. It is a big name in India's hospitality space, belonging to ITC Ltd, a large and varied business group. Its portfolio includes upscale hotels, resorts, and homestays under different brands. These offerings serve a wide range of travellers with a focus on top-notch experiences. The stock price of ITC Hotels has jumped. From its lowest point in February 2025, the stock rose by an impressive 30%. That's a steep increase in a short time. This raises an important question: Do investors still see a good balance between risk and reward with ITC Hotels? The answer isn't straightforward. ITC Hotels is a new listing, and it doesn't have much of a track record for earnings yet. This makes it hard to use the usual method of analysing its past financial data. How do we handle this? Well, we shift our focus to one of its closest competitors. Indian Hotels Company Ltd, or IHCL, which owns Taj Hotels, Resorts, and Palaces, becomes the natural choice to study. Indian Hotels has a long financial history, giving us plenty of data to study. But here's the catch. Can hotel stocks be judged just by looking at their price-to-earnings or PE ratio? We don't think so. Hotel profits swing. A pandemic economic slowdown, or even a local event can throw their yearly profits off balance. This makes figuring out the reliable earning potential of a hotel stock through the PE ratio quite tricky. So, what's a better way to value them? The usual practice for hotel properties is to focus on the worth of their assets instead. Indian Hotels has had an average price to book (PB) multiple of 5.6 times in the past decade. This raises a key question. Is using book value the best way to evaluate hotel stocks? To answer that, let's think about a basic comparison. Picture a ten-year-old car. Now, picture a ten-year-old thriving hotel property. What's the key distinction here? Cars lose their worth over time. A car bought for ₹15 lakhs, for example, might drop 90% in value over ten years. After that period, its market worth could fall to just ₹1.5 lakhs. Account books would show that decline as depreciation. Running a successful hotel is a whole different game. A hotel purchased at ₹15 crores might be valued at ₹50 crores after ten years. Its rise in value depends on location, brand popularity, and steady income flow. Here's a strange thing about accounting: Even when an asset gains value, it is often recorded in the books as if it lost value. Take this example. A property purchased for ₹15 crores might grow to be worth ₹50 crores in ten years, yet the books might still list it as being worth ₹5 crores. Let's understand this. A property bought for ₹15 crores might now be worth ₹50 crores in the market, but accounting records reduce its value to ₹5 crores due to depreciation policies. This is likely the reason high-quality hotel stocks often sell at rates far above their book value. Investors know the book value doesn't show what these properties are worth on the market. For instance, a property listed at ₹5 crores on paper might fetch ten times that in the real world because accounting rules show the depreciated value and not the current market price. On top of that, well-known hotel chains benefit from brand recognition and customer loyalty, which drives their worth even higher. Hotel stocks often show much higher prices compared to what their assets are worth on paper. In favourable times, this difference can climb up to ten times the book value. During tough periods, it can drop as low as double the book value. Take the coronavirus crash as an example. Back then, Indian Hotels' price-to-book value dropped to 2 times. Its stock hovered around ₹70 at that time. Now, it has crossed ₹750, offering eleven times the return in just five years. This highlights how undervalued stocks in this sector can grow. Over an entire market cycle, investors have paid about 5.6 times the book value to invest in Indian Hotels. On the other hand, EIH, or East India Hotels, which runs the Oberoi and Trident brands, has had a price to book ratio (PB ratio) of just three times over the past decade. This means Indian Hotels, a large and varied hotel chain holds a PB of 5.6 times. Meanwhile, EIH, a smaller, more high-end and luxury-focused brand, stands at three times. Where does ITC Hotels belong on this spectrum? Should it align more with Indian Hotels or lean toward EIH? ITC Hotels ranks as the second-largest chain after Indian Hotels and covers a wider range of offerings compared to EIH. This suggests to me that its valuations should be nearer to Indian Hotels than EIH. This places it around a PB multiple of between 3 and 5.6. Taking the average of these figures gives us a PB multiple of 4.5. If you multiply the current book value of ITC Hotels with this figure, you get around ₹225 per share. ITC Hotels at present trades close to ₹220 per share. This means it is at a small discount for an investor who thinks its price-to-book ratio should be somewhere between Indian Hotels and EIH. Now some might argue it deserves a higher PB ratio if there's confidence in a brighter future for ITC Hotels compared to its past. Take Indian Hotels as an example. Its current PB ratio is 10 times, which stands way above its long-term average of 5.6 times. Could we think of something similar with ITC Hotels? Maybe we can use a multiple like 8 times instead of the 4.5 times we calculated earlier? If you value a conservative investing approach, avoid paying heavy premiums just to bet on future growth. Instead, value a business closer to its ten-year average multiple. We hope this breakdown helps you in taking an informed decision about ITC Hotels. Happy Investing. Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. This article is syndicated from
Mint
29-05-2025
- Business
- Mint
Stocks to trade today: Trade Brains Portal recommends two stocks for 29 May
Stock market today: India's benchmark equity indices fell for a second consecutive session on Wednesday, 28 May, as selling pressure in heavyweights—led by ITC Ltd—weighed on sentiment. Despite strong cues from Wall Street, profit booking in auto, IT, and metal stocks dragged the market lower. The Nifty 50 slipped 63 points, or 0.3%, to close at 24,752, while the Sensex fell 240 points, or 0.29%, to end at 81,312. Broader markets fared better, with the Nifty Smallcap 100 rising 0.33% and the Nifty Midcap 100 ending flat. Against this backdrop, we have picked two stocks—one from the tyre sector and the other from the consumer durable sector for Thursday, 29 May. We also analyse the market's performance on Wednesday to understand what may lie ahead for the stock indices in the coming days. Stocks to trade today as recommended by Trade Brains Portal: Balkrishna Industries Ltd (BKT) Current price: ₹ 2472 Target price: ₹ 3,120 in 12 months Stop-loss: ₹ 2,148 Why it's recommended: Balkrishna Industries is a leading player in the off-highway tyre (OHT) market, catering to sectors such as agriculture, construction, mining, forestry, and industrial applications. With a global footprint in over 160 countries and marquee clients including John Deere, JCB, Caterpillar, AGCO, and TAFE, BKT is targeting an 8% share of the global OHT market. The company operates five tyre manufacturing plants across Rajasthan, Maharashtra, and Gujarat. In FY25, it sold 3,15,273 metric tonnes (MT) of tyres, marking 8% year-on-year growth. Financial performance (FY25): Revenue: ₹10,447 crore (+11.5% YoY) Ebitda: ₹2,682 crore (+16% YoY) Ebitda margin: 25.26% (+50 bps YoY) PAT: ₹1,655 crore (+12.5% YoY) Of total FY25 volumes, 59.9% came from agriculture and 36.6% from the off-the-road (OTR) segment. Europe accounted for 45.1% of volumes, while India contributed 28.6%. BKT has guided for 17% CAGR in revenue through FY30, aiming to reach ₹23,000 crore. It plans to invest ₹3,500 crore over the next three years to expand facilities in Bhuj for carbon black, power generation, CV tyres, rubber tracks, and PCR tyres. In the OHT segment, ongoing capex and de-bottlenecking will boost capacity by 35,000 MTPA to 425,000 MTPA. The company aims to raise the OHT segment's contribution to 70% of total revenue by FY30. Read this | Tata Sons feels the heat as TCS shrinks dividend for the first time in 20 years Risk factors: BKT is significantly exposed to fluctuations in the prices of key raw materials like natural rubber and crude oil derivatives. The company also faces foreign currency risk, as a major chunk of revenue comes from outside India. Recent developments like tariffs may impact BKT due to higher import costs. Symphony Ltd Current price: ₹ 1214 Target price: ₹ 1,360 in 12 months Stop-loss: ₹ 1,140 Why it's recommended: Founded in 1988 in Gujarat, Symphony Ltd has grown into a global air-cooling powerhouse with a presence in over 60 countries. It is the world's largest manufacturer of air coolers and commands leadership in the segment with over 25 million installations. The company has built strong IP-led differentiation, holding 201 trademarks, 64 registered designs, 15 copyrights, and 48 patents. Its product range includes 15+ industrial and commercial cooler models, backed by direct presence on four continents. Financial performance (FY25): Revenue: ₹1,576 crore (+36% YoY) EBITDA: ₹316 crore (+83% YoY) PAT: ₹213 crore (+44% YoY) Of total revenue, 90% ( ₹1,065 crore) came from the domestic market, with the remaining 10% ( ₹117 crore) from exports. Symphony pegs its global brand value at ₹13,000 crore. The company is focusing on expanding exports, particularly to the USA, Brazil, Europe, the Middle East, and other high-potential regions. Brazil, the world's fourth-largest cooler market, remains a strategic focus. Symphony plans to deepen its product offerings and expand its dealer network. It is also investing in innovation—offering features like digital controls, fuzzy logic, stylized design, and low-resource optimization. Having pioneered BLDC (brushless DC motor) coolers in India, Symphony is now exploring the BLDC fan market. It aims to tap into the growing $2 billion segment, expected to expand at 9–9.5% CAGR through 2029. Read this | NTPC's project execution delays remain its Achilles heel Risk factors: Symphony largely has seasonal business, so demand estimates might not work as company performance may decline when there is a weak or delayed summer. The company has over-dependency on the air cooler segment, diversification of the product portfolio is needed as there is growing competition within the air cooler market. Market Recap: May 28 Indian equity markets extended losses for the second consecutive session on Wednesday, with benchmark indices opening in the red and facing pressure throughout the day due to fund outflows and heightened activity in the primary markets. The Nifty 50 opened at 24,832.50 and hit an intraday low of 24,737.05, before closing at 24,752.45, down 73.75 points or 0.30%. The index remains above its 20-, 50-, 100-, and 200-day EMAs on the daily chart, with a Relative Strength Index (RSI) of 56.15. The BSE Sensex opened lower at 81,457.61 and fell to a low of 81,244.02, ending the day at 81,312.32, down 239.31 points or 0.29%. Sectoral Highlights: Top Gainer: Nifty Media rose 1.04% to close at 1,707.55. Key gainers included Network18 Media (+5.25%), Dish TV India Ltd. (+5%), and PVR Ltd. (+2.26%). Top Loser: Nifty FMCG declined 1.49% to 55,703.85, dragged down by a major block deal in ITC Ltd., where British American Tobacco offloaded 385 million shares (~3% equity). ITC Ltd. fell 3.16%, followed by Emami Ltd. (-1.79%) and Nestle India Ltd. (-1.70%). Global Markets Asian markets mirrored weak sentiment: Hang Seng: -0.53% at 23,258.31; Shenzhen Component: -0.26% at 10,003.27; Nikkei 225: Flat at 37,722.40 Also read | Four fast-growing space stocks to add to your watchlist Meanwhile, US markets saw a sharp rebound. The Dow Jones Industrial Average closed 1.78% higher at 42,343.65, buoyed by President Donald Trump's decision to delay 50% tariffs on European imports and a rise in US consumer confidence, which improved investor sentiment. Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Pvt. Ltd, and its Sebi-registered research analyst registration number is INH000015729. Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
Business Standard
28-05-2025
- Business
- Business Standard
ITC Ltd Slips 3.54%, BSE Fast Moving Consumer Goods index Shed 1.04%
ITC Ltd has lost 2.39% over last one month compared to 0.5% fall in BSE Fast Moving Consumer Goods index and 1.54% rise in the SENSEX ITC Ltd fell 3.54% today to trade at Rs 418.55. The BSE Fast Moving Consumer Goods index is down 1.04% to quote at 20472.49. The index is down 0.5 % over last one month. Among the other constituents of the index, Procter & Gamble Hygiene and Health Care Ltd decreased 1.56% and CCL Products (India) Ltd lost 1.43% on the day. The BSE Fast Moving Consumer Goods index went up 2.99 % over last one year compared to the 8.36% surge in benchmark SENSEX. ITC Ltd has lost 2.39% over last one month compared to 0.5% fall in BSE Fast Moving Consumer Goods index and 1.54% rise in the SENSEX. On the BSE, 132.19 lakh shares were traded in the counter so far compared with average daily volumes of 6.78 lakh shares in the past one month. The stock hit a record high of Rs 500.01 on 27 Sep 2024. The stock hit a 52-week low of Rs 381.24 on 04 Jun 2024.
Business Standard
28-05-2025
- Business
- Business Standard
Volumes soar at ITC Ltd counter
ITC Ltd recorded volume of 175.26 lakh shares by 10:46 IST on BSE, a 21.29 times surge over two-week average daily volume of 8.23 lakh shares Life Insurance Corporation of India, Techno Electric & Engineering Company Ltd, Medplus Health Services Ltd, Welspun Corp Ltd are among the other stocks to see a surge in volumes on BSE today, 28 May 2025. ITC Ltd recorded volume of 175.26 lakh shares by 10:46 IST on BSE, a 21.29 times surge over two-week average daily volume of 8.23 lakh shares. The stock lost 2.75% to Rs.421.95. Volumes stood at 17.17 lakh shares in the last session. Life Insurance Corporation of India saw volume of 10.62 lakh shares by 10:46 IST on BSE, a 13.83 fold spurt over two-week average daily volume of 76806 shares. The stock increased 7.24% to Rs.934.15. Volumes stood at 71240 shares in the last session. Techno Electric & Engineering Company Ltd saw volume of 1.54 lakh shares by 10:46 IST on BSE, a 7.08 fold spurt over two-week average daily volume of 21668 shares. The stock increased 10.59% to Rs.1,383.35. Volumes stood at 56462 shares in the last session. Medplus Health Services Ltd registered volume of 40920 shares by 10:46 IST on BSE, a 4.28 fold spurt over two-week average daily volume of 9571 shares. The stock rose 3.71% to Rs.985.50. Volumes stood at 4852 shares in the last session. Welspun Corp Ltd saw volume of 34521 shares by 10:46 IST on BSE, a 3.34 fold spurt over two-week average daily volume of 10351 shares. The stock increased 1.72% to Rs.797.15. Volumes stood at 9392 shares in the last session.
