Amid ITC investors and analysts' ongoing meet, this is what markets expect from today’s event

The much talked about ITC Limited’s first-ever Analyst and Investor Meet 2021 is ingoing. The meet is expected to get over by 5 pm as per the information shared by the company in its filing to the stock exchanges.  

Zee Business’ Varun Dubey lists what investors could expect from the event:  

• The company will be looking out for triggers for all its business verticals.  
• The focus is also likely to be on the Mergers & Acquisitions (M&A) 
• Focus likely to be on premiumization  
• The Infotech business has seen improvement in its margins 
• The margins have grown from 8% in 2019 to 25% now 
• Focus likely to be on exports in its FMCG business 
• Huge growth potential in the personal care segment 
• In its beverage segment, the company has tied up with Interglobe and INOX Leisure  
• Amid the Covid 19 pandemic, the focus has shifted on the branded products 
• The company has been benefitting from the launch of new products 
• The new products are seeing a volume growth of 11% 
• The hotel business is likely to see an asset light model 

See Zee Business Live TV Streaming Below:

The event is scheduled between 10:30 am and 5 pm, according to the company’s filing to exchanges. The stock was one of the top gainers on Thursday. 

The stock has been trading with a negative bias on Tuesday at Rs 229.30, down by almost 2.3 per cent or Rs 5.30 from the last closing price on Monday. 

Analysts are seeing this as a positive development for the stock of ITC and the investors will likely benefit from it.    

 Analyst, Sandeep Jain had earlier said that it was positive news for the company and one could see crucial announcements being made related to its various businesses. He said that the company could announce demerger plans or its different business.   

 The company has business interests in four verticals, including Fast Moving Consumer Goods (FMCG) that also comprises its cigarettes business. The other verticals are hotels, agri-business, paperboards, paper and packaging.   

The Tradeswift Director said that the talks of demerger have been doing the rounds earlier too and if there is any announcement in this regard, it will augur well or the company. The demerger will trigger value unlocking of its various businesses, he opined.  

Even the top management had indicated its concerns around valuation, Jain said adding that some positive news was likely in the offing.   

Technical Analyst Sacchitanand Uttekar also hold views similar to those of Jain. He said that the news was a positive trigger for the stock and the company is expected to announce something major, calling this event “unprecedented” for the ITC.  

 Uttekar, who is DVP-Head-Technicals & Derivatives at Tradebulls Securities said that he expected ITC to announce a demerger of its businesses. If this happens it will augur well for the company and its different businesses. This will not only help in the value unlocking of its businesses but also propel the stock prices, significantly, he added.