While the demerger in question would not be of the lucrative FMCG business, the fact that the board is reportedly considering such a move is enough to send a wave of excitement among its investors. Shares of the company rose nearly 2 per cent in a weak market on Wednesday, after reports said that the cigarette-to-shampoo maker is looking to hive off its IT services business ITC Infotech.
While some analysts have suggested that the move could be a bit early for the IT arm, a potential listing could value the business north of Rs 20,000 crore. More importantly, it will send a signal to investors that ITC is finally ready to pay heed to shareholders’ demand and unlock value in many of its businesses.
Hospital stocks in pink of health
Hospitals stocks are flying high on Dalal Street following a stellar quarter of earnings in the three-month period ended September. The sector has caught investors’ eye over the past few sessions as the first quarter following the second wave of the pandemic saw an improvement in bed occupancy as well as profitability. With most hospital chain owners done and dusted with their capex plans, investors expect them to sweat the new capacity to the fullest, provided the pandemic remains in check. No surprise then that shares of Apollo Hospitals, Kovai Medical, Shalby and Narayana Hrudayalaya surged 3-12 per cent on Wednesday.
Nykaa stutters after dream debut
Shares of Nykaa’s parent FSN E-Commerce have started to stutter after a dream debut on the bourses a week ago.
The stock that rose over 100 per cent in the first three days of its listing has already entered the correction territory after falling for the third successive session today. The stock has lost nearly 12 per cent of its gains after hitting a lifetime high on Friday, even as UBS Securities India initiated coverage with a buy rating. The brokerage said it expected another 25 per cent run-up in the stock given the long runway for profitable growth. In the short run, the stock is likely to see more selling as short-term investors book profits and in a few weeks, some anchor investors come into cash in their paper gains.
