ITC’s in the news because of the Hotel Business Demerger announcement.
Some nervy investors went ahead & booked profits post announcement today.
It’s a classic “Buy the rumour, sell the news” when you see the recent run up & profits booking today.
On a different note, a tiny bit of correction was much needed for weak hands to move out of the counter. Also, for a sustained bull run we need minor pull backs because a one way up rally usually leads to one way downward corrections.
If you ask me what impact this demerger has on ITC? My answer is, the Fundamentals of ITC remains intact.
Because of the demerger news, neither there would be increase nor decrease in the footfalls in their hotels business.
Because of the demerger news, neither there would be increase nor decrease in the consumption of cigarettes.
ITC is in structural bull run of it’s own & already on the way for valuations rerating on the upside because of strong business moats across segments it has built & continues to build.
Let the price not change your perception.
Focus on the business. It has not changed nor it will be changed overnight because of this demerger news.
I’m bullish on it & will continue to hold on to it with patience.
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