ITC Stock Rises As The Company Focuses On The Hotel Business

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ITC Stock Rises As The Company Focuses On The Hotel Business
12 Sep 2022
min read

News Synopsis

Following the diversified conglomerate's recent reiteration that it is exploring an 'alternative structure' for the hotels business, Imperial Tobacco Company of India Limited (ITC) shares have been hitting new 52-week highs on a regular basis.

On Friday, the BSE scrip closed 0.17% higher at Rs 330.55, after reaching a new 52-week high of Rs 333.35. On Thursday, the stock reached a 52-week high of Rs 330.55 before settling at Rs 330. Shares also reached a new multi-year high.

ITC chairman and managing director Sanjiv Puri reiterated earlier this week that the cigarette-to-soap maker is looking into alternative structures for its hotels business as the hospitality industry recovers from the effects of the pandemic.

Puri, who was leading a CII business delegation to the United States, stated that the conglomerate will reveal details about alternative hotel structures once "things are finalised." To remain competitive and deliver superior performance, the hotel segment would pursue the "asset-right" strategy. Puri also stated that the company is looking into foreign markets for the hospitality sector.

Prior to the coronavirus outbreak, the company had discussed "exploring" alternative structures for its hotel segment.

“When the pandemic came in, we said that we are holding it for now till things normalise, and we have reiterated in the annual report and the investors meet that we will take it forward in line with industry recovery dynamics,” Puri told reporters in July this year. “So, that is where it stands. It is very much on the table,”  he added.

TWN Special