New Delhi, March 22 -- With favourable demand-supply scenario, ITC's hotel business is expected to perform well in the coming years backed by asset-light growth strategy. Based on revenue and EBIDTA growth assumption, we derived a potential price target of Rs195 for ITC Hotels, providing an upside of 15-30% depending on the expected listing price of Rs150-170.

* Post demerger ITC's stock price could get adjusted by Rs.12-15/share. With focus on driving core, the earning and return profile of ITC will improve in long run. We recommend Buy on ITC with a target price of Rs.555

Key risks (i) Any substantial increase in tax rate on cigarette by government in the upcoming budget. (ii) Persistent slowdown in the urban demand to affect the FMCG...