ITC Hotels, Siemens Energy, AB Lifestyle: Are these 3 new shares worth traps or alternatives? – Inventory Insights Information

Picture this: Reliance Industries holds Reliance Retail and Reliance Jio below one roof, Tata Motors runs each its Commercial Vehicle and Passenger Vehicle divisions, and Edelweiss homes companies starting from asset administration to housing finance. Such a enterprise usually attracts a holding firm low cost.

It’s as a result of the market struggles to assign truthful worth to every enterprise individually, and the potential of those models usually will get overshadowed throughout the bigger consolidated construction. Additionally, progress will also be subdued.

A division that might have scaled quicker by itself might discover itself restricted when it’s a part of a a lot greater, slower-moving entity. This is why conglomerates usually choose to demerge, creating standalone verticals with unbiased administration and focus.

These companies can chart their very own course, transfer quicker, and unlock worth that was beforehand hidden. Such demergers, when backed by robust monetary efficiency, can flip into large worth creators for shareholders.

On related traces, three lately demerged companies have entered the market, and they’re value maintaining in your radar.

#1 ITC Hotels: Riding Travel Boom, Targeting 20,000 Rooms

ITC Hotels is a standalone entity that was demerged from ITC. It is among the many fastest-growing hospitality chains in India with 143 properties and 13,469 rooms below 6 manufacturers. This consists of ITC Hotels, Mementos, Welcomhotel, and Fortune.

ITC Hotels owns 42% of this portfolio whereas it manages 58%, from which it earns administration charges. The firm plans to extend the managed portfolio to 70% by 2030 because it expands.

RevPAR and occupancy positive aspects drive regular progress.

In Q1FY26, standalone income grew 20% year-on-year (YoY) to ₹7.8 billion, pushed by a 12.8% enhance in income per accessible room (RevPAR) to ₹7,900. Of the entire income, 50% got here from rooms, meals and drinks (40%), and others (10%).

ITC Hotels’ RevPAR in luxurious, upper-upscale, and upscale is 34% greater than the general business. Occupancy additionally grew 300 foundation factors (bps) to 73%.

EBITDA grew 13% to ₹2.3 billion, whereas margins remained secure at 32%. Higher RevPAR, greater administration charges, and price optimisation drove this progress. Profit after tax (PAT) grew 47% to ₹1.5 billion.

Aggressive enlargement plan with one resort a month

Looking forward, the corporate goals to succeed in 220 inns, with 20,000 rooms, by 2030. To obtain this, it goals to open 1 resort monthly for the subsequent 24 months. Of this, 58 inns with 5,340 rooms are within the pipeline.

ITC Hotels sees vital headroom for progress, with 25% of its stock working at occupancy ranges under 70%. ITC Hotels trades at an EV/EBITDA a number of of 36x, in keeping with Indian Hotels (35x).

ITC Hotels Share Price

#2 Aditya Birla LifeStyle Brand: A Company with Iconic Brands

Aditya Birla Lifestyle, part of the Aditya Birla Group, lately demerged from Aditya Birla Fashion and Retail. The enterprise at present homes famend life-style manufacturers like Van Heusen, Louis Philippe, Peter England, Allen Solly, American Eagle, Forever 21, and Reebok.

As of 30 June 2025, the corporate has a retail community comprising 3,230 model shops, 569 small-town shops, and a presence in over 785 cities and 190 malls. The firm operates below two enterprise segments: Lifestyle manufacturers, Youth Brands, and Innerwear.

Iconic labels maintain regular as youth manufacturers stumble.

Lifestyle manufacturers embody Louis Philippe, Van Heusen, Allen Solly, and Peter England. Lifestyle income rose 6% YoY to ₹15.7 billion, with 15% like-to-like progress. The EBITDA margin declined by 110 bps to 17.9%, primarily attributable to elevated promoting spending throughout a high-intensity occasion.

In channel-mix, income from retail shops elevated by 12% to ₹10.5 billion, indicating that demand could also be rebounding. The firm additionally famous a bounce-back in gross sales from small cities. Wholesale rose 6% to ₹2.9 billion, whereas e-commerce declined 19% to ₹1.7 billion.

Youth Brands are in an funding section.

Youth Brands’ (American Eagle, Reebok, and Van Heusen Innerwear) income declined 2% to ₹3.1 billion, primarily as a result of closure of Forever21. However, the portfolio continues to ship margin enlargement, with margins rising 170 bps to 2.8%.

This phase continues in funding mode with the innerwear enterprise but to realize profitability. It is now accessible in over 37,000 commerce shops and greater than 100 unique shops. Reebok is worthwhile and is offered in 175+ shops and 950+ offline touchpoints.

On a consolidated foundation, income grew 3.2% YoY to ₹18.4 billion in Q1FY26. EBITDA grew by simply 1%, whereas margins fell 40 foundation factors to fifteen.5%, primarily attributable to decrease margins from youth manufacturers. PAT remained flat at ₹240 million, as towards ₹230 million in the identical quarter final 12 months.

Looking forward, the corporate anticipates accelerating its progress trajectory by way of a speedy tempo of retailer additions over the subsequent three years. Lifestyle Brands are anticipated to realize double-digit progress for the subsequent few years, constructing on sustained robust like-to-like progress.

Scaling innerwear and Reebok to unlock the subsequent leg

Newer companies, together with American Eagle, Reebok, and Innerwear, are projected to develop at even greater charges of 18-20%. Innerwear is predicted to interrupt even in FY27, which might allow it to publish a better margin and PAT. It additionally plans to open 250 shops in FY26 throughout all manufacturers.

From a valuation standpoint, the corporate trades at an EV/EBITDA a number of of 15.3x. The valuation is at a reduction to Vedant Fashion (25.5x) and a premium to Raymond Lifestyle (13x) and Arvind Fashions (12x).

Aditya Birla Lifestyle Share Price

#3 Siemens Energy: A Play on Clean Energy

Siemens Energy, a number one power know-how firm, is a lately listed entity following its demerger from Siemens, a gaggle firm of Siemens Energy AG. Its enterprise spans decarbonisation, energy technology, energy evacuation, and clear power.

Powering forward on India’s power transition wave

Decarbonisation is a key focus for Siemens Energy, benefiting from India’s decarbonization efforts. The firm offers options to assist clients obtain power transition objectives and attain decarbonization and net-zero targets.

In the ability technology sector, it offers merchandise corresponding to giant fuel and steam generators, in addition to giant mills, to clients. Its clients embody electrical utilities and industrial clients. It offers grid automation and EPC companies in energy evacuation. EPC stands for engineering, procurement, and development companies.

The firm holds unique rights for the mother or father Siemens Energy merchandise, options, and companies portion in a number of South Asian nations, particularly India, Bhutan, Nepal, Sri Lanka, and the Maldives. Siemens’ monetary 12 months ends in September yearly.

Strong progress pushed by sectoral tailwind

Revenue grew 93.3% YoY to ₹51.8 billion within the 9 months ended June 2025. This progress was pushed by each energy transmission and energy technology. Transmission phase income grew 113% to ₹28.3 billion, whereas technology phase income grew 73.7% to ₹23.5 billion.

PAT greater than doubled to ₹7.4 billion, from 3.3 billion in 9MFY24. In phrases of profitability, the transmission phase’s revenue earlier than tax elevated 178% to ₹5.6 billion, whereas the technology phase’s revenue grew 58% to ₹4.0 billion.

Strong order ebook ensures visibility for 2 years.

Siemens Energy has a sturdy order backlog of ₹156 billion, offering income visibility for over two years. With international experience, the corporate is well-positioned to faucet into ₹3.4 trillion capex on inter-state transmission over the subsequent 4-5 years.

The demand for high-voltage (HV) and grid stability tools is rising, and Siemens is well-positioned to capitalize on it. To meet the demand, it’s also increasing its capability, with an funding of ₹2.8 billion at its Aurangabad manufacturing unit.

Premium valuations go away little margin for error

Siemens Energy is buying and selling at a P/E of 291x, considerably greater than Hitachi Energy (174.5x) and ABB (59.2x). Being newly listed, there isn’t a lot historic information to evaluate its valuation.

Siemens Energy Share Price

Conclusion

Demerger tales are thrilling as a result of they promise to unlock shareholder worth, however the final result in the end hinges on monetary efficiency. If a newly listed firm begins exhibiting robust and constant progress, the market normally rewards it with a rerating. But if earnings stay weak, the inventory usually drifts decrease, generally buying and selling even cheaper than earlier than. At the top of the day, inventory costs transfer in keeping with earnings progress—and no quantity of structural change can override that.

Disclaimer

Note: Throughout this text, now we have relied on information from and the corporate’s investor presentation. Only in circumstances the place the information was not accessible have we used an alternate however extensively used and accepted supply of data.

The objective of this text is barely to share attention-grabbing charts, information factors, and thought-provoking opinions. It is NOT a suggestion. If you want to think about an funding, you’re strongly suggested to seek the advice of your advisor. This article is strictly for academic functions solely.

Madhvendra has been deeply immersed within the fairness markets for over seven years, combining his ardour for investing together with his experience in monetary writing. With a knack for simplifying advanced ideas, he enjoys sharing his trustworthy views on startups, listed Indian corporations, and macroeconomic traits.

A devoted reader and storyteller, Madhvendra thrives on uncovering insights that encourage his viewers to deepen their understanding of the monetary world.

Disclosure: The author and his dependents don’t maintain the shares mentioned on this article.

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