What to expect from ITC's first-ever investors and analysts' meet? - Experts' take

ITC Limited will be organising its first-ever Analyst and Investor Meet 2021 on December 14. The event is scheduled to take place 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 day when the news of the meet was made.  

While the anticipation was high over the likely announcements, this is what analysts think could come out from the event.  

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

Analyst, Sandeep Jain 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 which include Fast Moving Consumer Goods (FMCG) which 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 o 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.  

ITC also remains a preferred by for this analyst and he had recommended this stock on Thursday for target of Rs 275. The stock today ended Rs 234.80, up by almost 4.4 per cent or over Rs 9 from the Wednesday closing price. He had recommended this stock at levels around Rs 229. 

The ITC shares were trading at Rs 235.35 on the NSE on Monday around 2:10 pm and with a slight negative bias on the back overall weakness in the stock markets. The stock witnessed a strong rally over four straight sessions. On Friday, it was down marginally.