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BSE: 500875 | NSE: ITC | Cigarettes/Tobacco | Large Cap
1. Is ITC Ltd a good quality company?
Past 10 year's financial track record analysis by Moneyworks4me indicates that ITC Ltd is a good quality company.
2. Is ITC Ltd undervalued or overvalued?
The key valuation ratios of ITC Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.
3. Is ITC Ltd a good buy now?
The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of ITC Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
Value Creation ⓘ
Value Creation Index Colour Code Guide ⓘ
|ROCE % ⓘ||35.4%||35.5%||33%||25.2%||23%||22.7%||23%||25.1%||20.9%||24.8%||-|
|Value Creation Index ⓘ||2.2||2.2||1.9||1.2||1.0||1.0||1.0||1.2||0.9||1.2||-|
Growth Parameters ⓘ
Growth Parameters Colour Code Guide ⓘ
|YoY Gr. Rt. %||-||11.2%||9.8%||0.2%||9.6%||1.3%||10.8%||1.4%||-0.3%||23.9%||-|
|Adj EPS ⓘ||6.1||7.2||7.8||7.5||8.2||9||10.2||12.4||10.4||12.1||15.1|
|YoY Gr. Rt. %||-||18.5%||7.8%||-3.6%||9.3%||9%||14.3%||21.3%||-16%||15.7%||-|
|BVPS (₹) ⓘ||18.8||22||25.5||33.5||36||40.6||45.6||50.4||46.6||48.8||54.4|
|Adj Net Profit ⓘ||7,228||8,621||9,362||9,065||9,972||10,924||12,536||15,251||12,824||14,864||18,754|
|Cash Flow from Ops. ⓘ||6,710||6,962||9,309||9,212||10,002||12,651||11,749||13,806||11,494||14,808||-|
|Debt/CF from Ops. ⓘ||0||0||0||0||0||0||0||0||0||0||-|
CAGR Colour Code Guide ⓘ
|9 Years||5 Years||3 Years||1 Years|
|Adj EPS ⓘ||7.9%||8%||5.6%||15.7%|
Key Financial Parameters ⓘ
Performance Ratio Colour Code Guide ⓘ
|Return on Equity % ⓘ||35.2||35.5||32.9||25||22.9||22.6||22.9||25||20.9||24.7||29.3|
|Op. Profit Mgn % ⓘ||35.6||37.8||36.8||37.7||36.4||38.3||38.7||39.4||34.3||33.5||34.5|
|Net Profit Mgn % ⓘ||24.2||25.9||25.7||24.8||24.9||26.9||27.9||33.4||28.2||26.4||27|
|Debt to Equity ⓘ||0||0||0||0||0||0||0||0||0||0||0|
|Working Cap Days ⓘ||83||91||90||93||96||125||133||125||111||102||184|
|Cash Conv. Cycle ⓘ||31||33||37||34||29||34||37||37||36||31||119|
Return on Equity has increased versus last 3 years average to 29.30%
Sales growth is good in last 4 quarters at 19.28%
Sales growth has been subdued in last 3 years 7.78%
Net Profit has been subdued in last 3 years 5.64%
|TTM EPS (₹)||15.1||15.4|
|TTM Sales (₹ Cr.)||69,481||75,827|
|BVPS (₹.) ⓘ||54.4||55.6|
|Reserves (₹ Cr.) ⓘ||66,351||67,912|
|From the Market|
|52 Week Low / High (₹)||258.05 / 452.00|
|All Time Low / High (₹)||0.69 / 452.00|
|Market Cap (₹ Cr.)||5,47,641|
|Equity (₹ Cr.)||1,242.8|
|Face Value (₹)||1|
|Industry PE ⓘ||28.5|
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the ITC's multi-business portfolio encompassing a wide range of businesses, the full stops in the Company's name were removed effective September 18, 2001. The company now stands rechristened ‘ITC Limited’ where 'ITC' is today no longer an acronym or an initialised form.
ITC has a diversified presence in FMCG, Hotels, Packaging, Paperboards & Specialty Papers and Agri-Business. ITC's aspiration to be an exemplar in sustainability practices is manifest in its status as the only company in the world, of its size and diversity, to be carbon, water and solid waste recycling positive. In addition, ITC's businesses and value chains create sustainable livelihoods for many people, a majority of whom represent the poorest in rural India.
ITC is the country's leading FMCG marketer, the clear market leader in the Indian Paperboard and Packaging industry, a globally acknowledged pioneer in farmer empowerment through its wide-reaching Agri Business, a pre-eminent hotel chain in India that is a trailblazer in 'Responsible Luxury'. ITC's wholly-owned subsidiary, ITC Infotech, is a specialized global digital solutions provider.
Over the last decade, ITC's new Consumer Goods Businesses have established a vibrant portfolio of many world- class Indian brands that create and retain value in India. ITC's world class FMCG brands including Aashirvaad, Sunfeast, Yippee, Bingo, B Natural, ITC Master Chef, Fabelle, Sunbean, Fiama, Engage, Vivel, Savlon, Classmate, Paperkraft, Mangaldeep, Aim and others have garnered encouraging consumer franchise within a short span of time. While several of these brands are market leaders in their segments, others are making appreciable progress.
The competitiveness of ITC's diverse businesses rest on the strong foundations of institutional strengths derived from its deep consumer insights, cutting-edge Research & Development, differentiated product development capacity, brand-building capability, world-class manufacturing infrastructure, extensive rural linkages, efficient trade marketing and distribution network and dedicated human resources. ITC's ability to leverage internal synergies residing across its diverse businesses lends a unique source of competitive advantage to its products and services.
Business area of the company:
ITC has business interests in cigarettes, hotels, paperboards and specialty papers, packaging, agribusiness, packaged foods and confectionery, information technology, branded apparel, personal care, stationery, safety matches and other FMCG products.
Products and services:
Fast Moving Consumer Goods (FMCG)
ITC is one of India’s leading marketers in Fast Moving Consumer Goods. It is ITC's strategic intent to secure long-term growth by synergising and blending the diverse pool of competencies residing in its various businesses to exploit emerging opportunities in the FMCG sector.
Launched in 1975, ITC Hotels, India's premier chain of luxury hotels, has become synonymous with Indian hospitality. ITC Hotels pioneered the concept of 'Responsible Luxury' in the hospitality industry, drawing on the strengths of ITC groups' exemplary sustainability practices. Responsible Luxury personifies an ethos that integrates world-class green practices with contemporary design elements to deliver the best of luxury in the greenest possible manner.
The Responsible Luxury commitment of ITC Hotels blends elements of nature to deliver a unique value proposition to guests, conscious of their responsibility to be planet positive. These unique interventions have made ITC Hotels a trailblazer in green hoteliering with all its premium luxury hotels LEED (Leadership in Energy and Environmental Design) Platinum certified.
Paperboards and Specialty Papers Business
ITC's Paperboards and Specialty Papers Business is the leader in volume, product range, market reach and environmental performance, and is the clear market leader in the value-added paperboards segment. Providing internationally competitive quality and cost, the Business caters to a wide spectrum of packaging, graphic, communication, writing, printing and specialty paper requirements.
ITC takes great pride in servicing a large cross-section of industry requirements - from cigarette papers and Components to FMCG cartons, from electrical insulation papers to Bio-based Barrier Coated Board, from decorative laminate base to writing and printing papers and much more. ITC straddles the entire spectrum of paperboards - from 100% virgin, food-grade boards which are made from renewable and sustainable sources to 100% recycled boards.
The product range includes
Packaging & Printing Business
ITC's Packaging & Printing Business is the largest value added converter of paperboard packaging in South Asia. It converts tonnes of paper, paperboard and laminates per annum into a variety of value-added packaging solutions for the food & beverage, personal products, cigarette, liquor and consumer goods industries.
The Division, which was set up in 1925 as a strategic backward integration for ITC's Cigarettes business, is today India's most sophisticated packaging house. State-of-the-art technology, world-class quality and a highly skilled and dedicated team have combined to position ITC as the first-choice supplier of high value added packaging.
The Division supplies value-added packaging to ITC's various FMCG businesses. Its client list includes several well-known national and international companies like Nokia, Colgate Palmolive, Pernod Ricard, Diageo, British American Tobacco, Philip Morris International, Agio Cigars, UB Group, Tata Tetley, Tata Tea, Reckitt Benckiser, Radico Khaitan, Akbar Brothers, Surya Nepal, VST Industries, etc.
Agri Commodities and Rural Services
ITC is one of India’s largest integrated agri business enterprise with significant presence across every node of the agri value chain.
ITC's pre-eminent position as one of India's leading corporates in the agricultural sector is based on strong and enduring farmer partnerships that has revolutionized and transformed the rural agricultural sector. A unique rural digital infrastructure network, coupled with deep understanding of agricultural practices and intensive research, has built a competitive and efficient supply chain that creates and delivers immense value across the agricultural value chain. One of the largest exporters of agri products from the country, ITC sources the finest of Indian Feed Ingredients, Food Grains, Marine Products, Processed Fruits & Coffee.
ITC's Agri Business is the country's second largest exporter of agri-products. It currently focuses on exports and domestic trading of:
Major Awards 2019-2020
Major awards over the years