ITC Hotels share price jumps 6% after Q2 results - Is it the right time to buy the stock? Experts decode
ITC Hotels share price jumped 6% in morning trade on the BSE on Tuesday, 27 October, a day after the company reported its September quarter (Q2FY27) earnings. ITC Hotels shares opened at ₹168.65 against their previous close of ₹164.40 and rose 6% to an intraday high of ₹174.30, looking set to extend gains for the second consecutive session. In the previous session, the stock jumped 5%.
During market hours on Monday, the company said its profit for the September quarter jumped 51.4% year-on-year (YoY) to ₹201.02 crore. Revenue from operations for the quarter stood at ₹1,054.14 crore, up 25.6% YoY. EBITDA at ₹ 337 crore rose 37% YoY.
The stock has been under pressure this year amid a challenging macroeconomic environment. Year-to-date, the stock is down 13% compared to a 14% drop in the equity benchmark Sensex.
It hit a 52-week high of ₹226.65 on 27 October last year and a 52-week low of ₹137.40 on 30 March this year.
Brokerage firm JM Financial maintained a buy call on the stock but slightly raised the 12-month target price to ₹235 from ₹225 earlier.
JM Financial said ITC Hotels Q2FY27 earnings print was better than forecasts,
supported by healthy transient demand across key markets and buoyancy in the MICE business, aided by the BRICS Summit in New Delhi.
JM Financial revised its FY27 and FY28 EBITDA estimates upward by 3% and 4%, respectively, and expects revenue and EBITDA to grow at 11% and 14% CAGR over FY26–29E.
On the technical front, ITC Hotels share price has started to rise in a corrective structure where the short-term trend has changed to an uptrend with the formation of higher highs and higher lows.
According to Aditya Thukral, founder and analyst at AT Research and Risk Managers, the stock also exhibited a symmetrical triangle, with the breakout accompanied by a rise in volume; the price target for the same pattern is around ₹178. Also, the correction in stock prices could take the form of a flat correction, a double-three, or a triangle.
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"In the case of a triangular correction, prices would spend time between ₹188 and ₹138, which are the swing high and low of previous moves. However, in the other two scenarios, the possibility of the stock moving towards 200 and above is highly possible," said Thukral.
"The stock has moved above all the major EMAs, and the continuous sustaining above these would increase the possibility of the stock price moving towards 200 in the near term. It is in a short-term uptrend, and sustaining above the major EMAs would lead the stock to move towards ₹200. However, a move below ₹154 would resume the downtrend in the stock price, and it’s the stop level for all long positions as of now," said Thukral.
Vipin Kumar, AVP-Research at Globe Capital Market, pointed out that ITC Hotels started the pullback rally from the price support placed around the ₹150 level. Kumar believes the ongoing pullback rally may continue up to ₹185– ₹190 spot levels.
"A decisive close above ₹190 with volume support will confirm a positional shift from a sideways to a bullish zone," said Kumar.
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HomeMarketsStock MarketsITC Hotels share price jumps 6% after Q2 results - Is it the right time to buy the stock? Experts decode
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