Expect Rs 20 gain per share of ITC from ITC Hotels listing if duty remains unchanged: Amnish Aggarwal
Amnish Aggarwal, Head — Research, Prabhudas Lilladher, says ITC will retain a 40% stake in ITC Hotels, potentially reducing its sum of the parts (SOTP) valuation by Rs 15-17 post the latter’s listing. This makes the ITC Hotels listing a positive for shareholders. Three key events for ITC are: the demerger of ITC Hotels, a possible interim dividend in mid-February, and the upcoming Budget, which may affect duties. If excise duties remain unchanged in February, the stock could see double-digit returns, with a potential gain of around Rs 20 per share from the ITC Hotels listing.
How is the year ahead going to pan out? Is it going to be as happy as the first half of 2024 or not quite?
Amnish Aggarwal: In the next couple of months, I expect the markets to remain slightly volatile because the first factor to watch out for is Donald Trump summing reins as the US president. The second key factor to watch out for will be the Budget on 1st of February and then obviously the earning season is ahead of us. So, the next couple of months could be volatile but as we progress through the year, I expect the markets to not only stabilise but give double-digit returns in the coming year.
What is your take regarding the IT pack? Yesterday, there was quite a bit of carnage with that index slipping almost 3% at four-week lows. It recovered on an intraday basis, but there seems to be this niggling worry around the H-1B visas. Now, Trump was on board with what Elon Musk said and is looking at perhaps raising the minimum flat wage for the
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