ITC Hotels

Why is ITC Hotels Ltd falling/rising?

As of 10-Jun, ITC Hotels Ltd's stock price is falling, currently at 150.40, reflecting a change of -0.5 (-0.33%). The stock has significantly underperformed the market, with a year-to-date decline of 23.83% and a one-year drop of 31.39%, attributed to weak long-term growth prospects and overvaluation despite positive quarterly results.

As of 10-Jun, ITC Hotels Ltd's stock price is falling, currently at 150.40, reflecting a change of -0.5 (-0.33%). The stock has underperformed the sector today by -0.26% and is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. <BR><BR>Over the past week, the stock has declined by 1.25%, and in the last month, it has dropped by 8.65%, significantly underperforming the Sensex, which fell by only 4.33% during the same period. Year-to-date, ITC Hotels has seen a substantial decline of 23.83%, compared to a 13.19% drop in the benchmark index. Over the past year, the stock has plummeted by 31.39%, while the Sensex has only decreased by 10.21%. <BR><BR>Additionally, there has been a notable decrease in investor participation, with delivery volume falling by 7.9% against the 5-day average. Despite being net-debt free and reporting positive quarterly results, including a 52.9% growth in PAT and record net sales, the company's long-term growth prospects appear weak. The annual growth rates for net sales and operating profit over the last five years are only 9.30% and 11.79%, respectively. Furthermore, the stock's return on equity (ROE) of 7.6 and a high price-to-book value of 2.8 suggest that it is overvalued. <BR><BR>In summary, the combination of poor long-term growth, significant recent declines, and underperformance relative to benchmarks are contributing to the falling stock price of ITC Hotels Ltd.

What does ITC Hotels do?

ITC Hotels Ltd operates in the Hotels & Resorts industry and was incorporated in 2023. As of March 2026, it reported net sales of 1,254 Cr and a net profit of 316 Cr, with a market cap of INR 31,911 Cr.

Overview:<BR>ITC Hotels Ltd operates in the Hotels & Resorts industry and is categorized as a Mid Cap company.<BR><BR>History:<BR>ITC Hotels Limited was incorporated as a Public Limited Company in the year 2023, with a Certificate of Incorporation issued on July 28, 2023. The latest quarterly results reported are for March 2026, showing sales and profit figures.<BR><BR>Financial Snapshot:<BR>Net Sales: 1,254 Cr (Quarterly Results - Mar 2026) <BR>Net Profit: 316 Cr (Quarterly Results - Mar 2026) <BR>Market Cap: INR 31,911 Cr (Mid Cap)<BR><BR>Key Metrics:<BR>P/E: 36.00 <BR>Industry P/E: 35 <BR>Dividend Yield: 0.66% <BR>Debt Equity: -0.13 <BR>Return on Equity: 7.63% <BR>Price to Book: 2.76 <BR><BR>Contact Details:<BR>Registrar Address: Not available. <BR>Phone: N/A <BR>Email: N/A <BR>Website: N/A

Which are the latest news on ITC Hotels?

How big is ITC Hotels?

As of 10th June, ITC Hotels Ltd has a market capitalization of 31,911.00 Cr, with recent net sales of 4,139.40 Cr and a net profit of 816.89 Cr.

As of 10th June, ITC Hotels Ltd has a market capitalization of 31,911.00 Cr, categorizing it as a Mid Cap company.<BR><BR>In the latest four quarters, ITC Hotels reported Net Sales of 4,139.40 Cr and a Net Profit of 816.89 Cr.<BR><BR>The latest annual period for the balance sheet is March 2025, with Shareholder's Funds amounting to 10,692.17 Cr and Total Assets of 12,472.39 Cr.

Should I buy, sell or hold ITC Hotels Ltd?

How has been the historical performance of ITC Hotels?

ITC Hotels reported significant growth for the fiscal year ending March 2025, with total operating income of ₹3,559.81 crore, a profit after tax of ₹621.77 crore, and an operating profit margin of 34.34%. Shareholder's funds increased to ₹10,692.17 crore, reflecting strong financial performance and asset growth.

Answer:<BR>The historical performance of ITC Hotels for the fiscal year ending March 2025 shows significant growth in various financial metrics.<BR><BR>Breakdown:<BR>In March 2025, ITC Hotels reported total operating income of 3,559.81 crore, with a total expenditure (excluding depreciation) of 2,348.93 crore, leading to an operating profit (PBDIT) of 1,277.18 crore. After accounting for interest and depreciation, the profit before tax stood at 868.19 crore, resulting in a profit after tax of 621.77 crore. The consolidated net profit was recorded at 634.57 crore, with earnings per share (EPS) at 3.05. The operating profit margin was 34.34%, and the profit after tax margin was 18.08%. On the balance sheet, shareholder's funds increased to 10,692.17 crore from 8,497.85 crore in the previous year, while total liabilities rose to 12,472.39 crore from 10,188.03 crore. The total current assets also saw a significant increase, reaching 3,456.96 crore compared to 1,546.80 crore in March 2024. Cash flow from operating activities improved to 803.00 crore, while cash flow from investing activities showed a larger outflow of 2,205.00 crore. Overall, ITC Hotels demonstrated strong financial performance with notable increases in revenue, profit, and assets.

Is ITC Hotels overvalued or undervalued?

As of July 23, 2025, ITC Hotels is considered very expensive with a PE ratio of 72.55, significantly higher than its peers, indicating overvaluation despite a recent strong stock performance.

As of 23 July 2025, the valuation grade for ITC Hotels has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 72.55, an EV to EBITDA ratio of 41.40, and a Price to Book Value of 4.59. These ratios suggest that the stock is trading at a premium compared to its earnings and book value, raising concerns about its sustainability.<BR><BR>In comparison to its peers, ITC Hotels' PE ratio is notably higher than that of Indian Hotels Co, which stands at 62.97, and EIH at 31.5. This disparity highlights the overvaluation of ITC Hotels within the industry. Additionally, the company's recent stock performance has outpaced the Sensex, with a 1-month return of 14.95% compared to the Sensex's 1.01%, although this does not mitigate the overall valuation concerns.

Who are the top shareholders of the ITC Hotels?

The top shareholders of ITC Hotels include ITC Limited with 39.88%, foreign institutional investors at 25.37%, and individual investors holding 10.7%. There are no pledged promoter holdings, and the highest public shareholder is Tobacco Manufacturers (India) Limited, which holds 0%.

The top shareholders of ITC Hotels are primarily its promoters, with ITC Limited holding the largest share at 39.88%. Additionally, foreign institutional investors (FIIs) hold 25.37% of the shares, while mutual funds collectively account for 3.47% through 30 different schemes. Individual investors have a stake of 10.7%. Notably, there are no pledged promoter holdings, and the highest public shareholder is Tobacco Manufacturers (India) Limited, which holds 0%.

When is the next results date for ITC Hotels?

No Upcoming Board Meetings

Has ITC Hotels declared dividend?

No Dividend History Available

Who are the peers of the ITC Hotels?

ITC Hotels' peers include Indian Hotels Co, EIH, Chalet Hotels, and Lemon Tree Hotel, among others. In terms of management risk, EIH and Apeejay Surrend have excellent ratings, while Indian Hotels Co shows good growth, and the highest 1-year return is 34.99% from Indian Hotels Co.

Peers: The peers of ITC Hotels are Indian Hotels Co, EIH, Chalet Hotels, Ventive Hospital, Lemon Tree Hotel, Mahindra Holiday, Juniper Hotels, I T D C, Samhi Hotels, and Apeejay Surrend.<BR><BR>Quality Snapshot: Excellent management risk is observed at EIH and Apeejay Surrend., while Average management risk is found at Indian Hotels Co, Lemon Tree Hotel, Mahindra Holiday, Juniper Hotels, I T D C, and the rest. Below Average management risk is noted at Chalet Hotels, Ventive Hospital, Samhi Hotels, and the rest. In terms of Growth, Excellent growth is seen at EIH, Ventive Hospital, and Juniper Hotels, while Good growth is noted at Indian Hotels Co and the rest. Average growth is found at Lemon Tree Hotel, I T D C, and the rest, while Below Average growth is observed at Chalet Hotels and Mahindra Holiday. Capital Structure is Excellent for EIH and I T D C, Good for Indian Hotels Co, Average for Ventive Hospital, and Below Average for Chalet Hotels, Lemon Tree Hotel, Mahindra Holiday, Juniper Hotels, Samhi Hotels, and the rest.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Indian Hotels Co at 34.99%, while the peer with the lowest is EIH at -10.83%. ITC Hotels does not have a 1-year return available for comparison. Additionally, the peers with negative six-month returns include EIH, Chalet Hotels, and I T D C.