“We look at the business strategy, the competitive context, maturity of the business, and weigh the pros and cons of the current structure. Whatever is best, we recommend for shareholders’ approval,” he responded to a query on the possibility of ITC Infotech’s demerger as a separate listed company.

“Just like we did for hotels, whatever is right will be done at the right time. Nothing is cast in stone,” Sanjiv Puri added.

ITC Infotech is a wholly-owned subsidiary of ITC Ltd. It is a technology solutions and services provider with focus on banking, healthcare, manufacturing, consumer goods and other industries.

ITC Ltd completed the demerged its hotel business — ITC Hotels — into a separate listed company in January this years. Under the demerger scheme, ITC had issued 1 share of ITC Hotels for every 10 shares held in the parent company as on the record date. ITC Hotels shares were listed on the NSE at Rs 180 and on BSE at Rs 188.

Sanjiv Puri also cited an analyst report at the AGM to say that ITC has created one of the most capital-efficient FMCG businesses, despite the total addressable market being as high as Rs 5 lakh crore. Referring to studies by leading consulting firms in 2002, 2006, and 2017, he said that studies by leading consulting firms have “observed that conglomerates delivered superior shareholder returns in about 50 per cent of cases”.

On value creation, Sanjiv Puri said that it is “not a function of diversification” but of “how that diversity is managed”. “With distributed leadership, strong governance and institutional synergies, ITC has turned this into a strength”.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)

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When we think of grand buildings, countries like the United States or the United Arab Emirates usually come to mind. But here’s a surprising fact: the tallest hotel in the world is not in Dubai or New York—it’s in North Korea. The Ryugyong Hotel in Pyongyang stands at a height of 330 meters and has 105 floors. Yet, despite its impressive size, the hotel has never welcomed a single guest, according to reports.

Known for its pyramid-like shape, the Ryugyong Hotel is often compared to the ancient Egyptian pyramids. It is nearly twice as tall as India’s Statue of Unity, which stands at 182 meters. Built with the dream of becoming a symbol of North Korea’s growth and modern architecture, the hotel is now more famous for being unfinished and empty.

Construction of the hotel began in 1987 and was initially completed in 1992. However, due to the collapse of the Soviet Union and the resulting economic crisis in North Korea, the interior work was never finished. For many years, the building stood as an empty shell.

In 2008, an Egyptian company took on the task of improving the exterior of the hotel. They invested around USD 180 million to add glass panels and aluminium cladding. This work was completed in 2011. Today, the outside of the hotel is fitted with LED lights, which are used to display patriotic videos and symbols during national celebrations. But inside, the hotel remains deserted, according to reports.

Interestingly, despite being completed from the outside, the hotel has never been officially inaugurated. The lack of guests is simply because the interiors are still incomplete.

Lords Ishwar Hotels, a microcap player in the Hotels & Resorts industry, has recently undergone an evaluation adjustment that reflects a shift in its technical outlook. The stock’s technical indicators have shown a transition from a bearish stance to a mildly bearish position, suggesting a nuanced change in market sentiment.

In terms of key financial metrics, Lords Ishwar Hotels has reported a flat financial performance for the quarter ending Q4 FY24-25. The company has demonstrated a modest average Return on Capital Employed (ROCE) of 2.87%, indicating challenges in long-term fundamental strength. Over the past five years, net sales have grown at an annual rate of 2.11%, while operating profit has increased by 5.22%. However, the company faces a high Debt to EBITDA ratio of 3.29 times, which raises concerns about its ability to service debt.

Despite these challenges, the stock has generated a return of 9.57% over the past year, outperforming the BSE500 index in each of the last three annual periods. The stock is currently trading at a discount compared to its peers’ average historical valuations, with a fair valuation indicated by an enterprise value to capital employed ratio of 1.7.

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