ITC Hotels shares extend rally for second day, rise 6% post-strong Q2; brokerages bullish, check share price targets

What happened

ITC Hotels shares jumped nearly 6% on Tuesday, extending a second-day rally after strong July-September quarter results. Net profit rose 52.03% to Rs 202.65 crore, while revenue from operations increased to Rs 1,054.14 crore from Rs 839.48 crore a year ago.

Confirmed

Global impact / market context

Faster profit growth than revenue growth suggests the hotel chain kept more of each rupee of sales as profit per sale improved, which can support higher share valuations. Brokerages staying positive on strong demand and an expanding hotel portfolio may encourage investors to hold or add the stock.

Analyst inference

The stock opened at Rs 168.65 and hit an intraday high of Rs 174.30, versus the previous close of Rs 164.40. Such gains show investors quickly repriced the shares after earnings, while total expenses rising to Rs 831.33 crore shows costs still grew alongside revenue.

Analyst inference

What to watch

1. ITC Hotels' total expenses rose to Rs 831.33 crore from Rs 699.72 crore a year ago, so watch whether cost growth keeps pace with revenue in coming quarters. Confirmed
2. Brokerages cited strong demand, improving margins and an expanding hotel portfolio; track whether they publish specific share price targets and whether those targets change after results. Proposed
3. Watch whether the second-day rally holds above the previous close of Rs 164.40, since a fade toward that level would signal investors are taking profits after the earnings jump. Analyst inference

Evidence

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