ITC Hotels’ share price reaches 52-week high: Key reasons for the rise

With the Christmas season approaching, listed firms with operations in hotels, airlines, and trains are witnessing a boost in trade volumes. Market investors are particularly interested in freshly listed ITC Hotels. On Friday, ITC Hotels shares rose 5.30% to ₹192.54 on the National Stock Exchange. The stock rose to a 52-week high of ₹193.27 during the session. According to NSE statistics, the company’s market capitalization was ₹40,070.87 crore.

According to sources, many businesses have been added to the FTSE All-World Index. ITC Hotels was among the companies that were included. Its weightage was also estimated at $52.6 million, which will result in increased inflows. According to projections, the Indian equities markets are expected to receive inflows ranging from $1.4 billion to $1.6 billion following the March 21 closure. Following the most recent rebalance on Friday, up to 14 firms have been added to the global index provider FTSE’s All-World Index. Last month, global brokerage company Jefferies upgraded its prognosis for the hotel, emphasizing its strong franchise, diverse brand portfolio, and solid financial condition.

In its study, Jefferies stated that ITC Hotels’ occupancy rates are expected to climb from 69% in fiscal year 2024 to around 75% by fiscal year 2027, with a RevPAR CAGR of 9% throughout the same time. Jefferies expects growing demand for travel and tourism to persist between FY24 and FY27, allowing ITC Hotels to post consistent growth over the next four years. “We expect 15% EBITDA CAGR for the hotel business, driving a total EBITDA CAGR of 16% over FY24-FY27e,” according to the report.

ITC Hotels’ shares have been the focus of market investors since its IPO. In a month, the stock had risen about 18%. Since its IPO on January 29 of this year, the stock has increased 12.3% through Friday’s trading period. ITC Hotels was recently demerged from the ITC enterprises and floated as a standalone corporation to unleash shareholder value. On January 29, 2025, ITC Hotels shares were listed on the BSE for ₹188 per share after the demerger.

In the October-December 2024 quarter, ITC Hotels reported its best-ever quarterly performance, with revenue of ₹922 crore and profit before tax of ₹302 crore, both up 43.4% YoY. ITC Limited currently owns 40% of ITC Hotels, and shareholders have the remaining 60%, which is in proportion to their stake in ITC Limited.

In the October-December 2024 quarter, ITC Hotels reported its best-ever quarterly performance, with revenue of ₹922 crore and profit before tax of ₹302 crore, both up 43.4% YoY. ITC Limited currently owns 40% of ITC Hotels, and shareholders have the remaining 60%, which is in proportion to their stake in ITC Limited.