Tuesday was the worst day for ITC Ltd. shares in over a week, as the company revived its plan to spin off its hotel business as the industry recovered from the pandemic’s lows.
ITC Chairman Sanjiv Puri said in an interview with Hindu BusinessLine that the conglomerate was seeking a “alternative business structure” for its hotel division. Since the pandemic, ITC’s plans to separate off its hotel businesses have been suspended.
Puri stated that the proposition for a demerger was “back on the table” as a result of the hotel business’s recovery following the pandemic.
ITC Shares Recover After Falling Most In Nearly A Week
As of 10:15 a.m. IST, ITC Ltd. shares were trading at Rs 446.6 apiece, down 0.56 percent from their intraday low of Rs 448.60. This compares to a 0.31 percent increase in the Nifty. Since May 19, the stock has declined the most in over a week.
The total trading volume was 1.60 times the 30-day average. At 72, the relative strength index suggests that the stock may be overbought.
According to Bloomberg data, among the 38 analysts following the company, 34 maintain a ‘buy’ rating and four recommend a ‘hold’ rating. The average 12-month price target indicates a 4% upside potential.