Market Cap
₹2.5t
Last Updated
2021/07/31 12:11 UTC
Data Sources
Company Financials +
Executive Summary
ITC Limited engages in the fast-moving consumer goods, hotels, paperboards and paper, packaging, agri, and information technology (IT) businesses in India and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet established dividend payer.
Similar Companies
Share Price & News
How has ITC's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ITC is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: ITC's weekly volatility (2%) has been stable over the past year.
Market Performance
7 Day Return
-3.5%
ITC
-3.4%
IN Tobacco
0.2%
IN Market
1 Year Return
5.6%
ITC
-4.7%
IN Tobacco
54.1%
IN Market
Return vs Industry: ITC exceeded the Indian Tobacco industry which returned -4.8% over the past year.
Return vs Market: ITC underperformed the Indian Market which returned 54% over the past year.
Shareholder returns
| ITC | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.5% | -3.4% | 0.2% |
| 30 Day | 1.0% | 0.9% | 2.0% |
| 90 Day | 1.2% | 1.6% | 12.6% |
| 1 Year | 11.0%5.6% | -0.5%-4.7% | 56.2%54.1% |
| 3 Year | -24.0%-32.6% | -28.7%-38.4% | 37.3%30.3% |
| 5 Year | -5.4%-18.8% | -27.2%-41.2% | 81.9%66.7% |
Long-Term Price Volatility Vs. Market
How volatile is ITC's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
ITC's (NSE:ITC) Sluggish Earnings Might Be Just The Beginning Of Its Problems2 weeks ago | Simply Wall St
Shareholders Are Optimistic That ITC (NSE:ITC) Will Multiply In Value4 weeks ago | Simply Wall St
How Much Of ITC Limited (NSE:ITC) Do Institutions Own?Valuation
Is ITC undervalued compared to its fair value and its price relative to the market?
10.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ITC (₹204.95) is trading below our estimate of fair value (₹228.4)
Significantly Below Fair Value: ITC is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: ITC is poor value based on its PE Ratio (18.1x) compared to the Asian Tobacco industry average (15.4x).
PE vs Market: ITC is good value based on its PE Ratio (18.1x) compared to the Indian market (23.6x).
Price to Earnings Growth Ratio
PEG Ratio: ITC is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: ITC is overvalued based on its PB Ratio (4.2x) compared to the IN Tobacco industry average (2.2x).
Future Growth
How is ITC forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
9.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ITC's forecast earnings growth (9.7% per year) is above the savings rate (6.8%).
Earnings vs Market: ITC's earnings (9.7% per year) are forecast to grow slower than the Indian market (20.6% per year).
High Growth Earnings: ITC's earnings are forecast to grow, but not significantly.
Revenue vs Market: ITC's revenue (7.8% per year) is forecast to grow slower than the Indian market (12.4% per year).
High Growth Revenue: ITC's revenue (7.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ITC's Return on Equity is forecast to be high in 3 years time (26.9%)
Past Performance
How has ITC performed over the past 5 years?
6.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ITC has high quality earnings.
Growing Profit Margin: ITC's current net profit margins (26.4%) are lower than last year (30.8%).
Past Earnings Growth Analysis
Earnings Trend: ITC's earnings have grown by 6.3% per year over the past 5 years.
Accelerating Growth: ITC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ITC had negative earnings growth (-3.7%) over the past year, making it difficult to compare to the Tobacco industry average (0.5%).
Return on Equity
High ROE: ITC's Return on Equity (23.3%) is considered high.
Financial Health
How is ITC's financial position?
Financial Position Analysis
Short Term Liabilities: ITC's short term assets (₹349.9B) exceed its short term liabilities (₹106.9B).
Long Term Liabilities: ITC's short term assets (₹349.9B) exceed its long term liabilities (₹24.4B).
Debt to Equity History and Analysis
Debt Level: ITC's debt to equity ratio (0.02%) is considered satisfactory.
Reducing Debt: ITC's debt to equity ratio has reduced from 0.2% to 0.02% over the past 5 years.
Debt Coverage: ITC's debt is well covered by operating cash flow (127697.1%).
Interest Coverage: ITC earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is ITC current dividend yield, its reliability and sustainability?
5.61%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ITC's dividend (5.61%) is higher than the bottom 25% of dividend payers in the Indian market (0.34%).
High Dividend: ITC's dividend (5.61%) is in the top 25% of dividend payers in the Indian market (1.42%)
Stability and Growth of Payments
Stable Dividend: ITC's dividends per share have been stable in the past 10 years.
Growing Dividend: ITC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (95%), ITC's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ITC's dividends in 3 years are forecast to be covered by earnings (83.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Sanjiv Puri (58 yo)
4.33yrs
Tenure
₹101,021,000
Compensation
Mr. Sanjiv Puri has been Managing Director of ITC Limited since May 16, 2018 and also has been its Director since December 6, 2015 and its Chairman since May 13, 2019. Mr. Puri served as Chief Executive Of...
CEO Compensation Analysis
Compensation vs Market: Sanjiv's total compensation ($USD1.36M) is about average for companies of similar size in the Indian market ($USD1.25M).
Compensation vs Earnings: Sanjiv's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: ITC's management team is considered experienced (3.8 years average tenure).
Board Members
Experienced Board: ITC's board of directors are considered experienced (5.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ITC insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
ITC Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: ITC Limited
- Ticker: ITC
- Exchange: NSEI
- Founded: 1910
- Industry: Tobacco
- Sector: Food, Beverage & Tobacco
- Market Cap: ₹2.523t
- Shares outstanding: 12.31b
- Website: https://www.itcportal.com
Number of Employees
Location
- ITC Limited
- Virginia House
- 37 Jawaharlal Nehru Road
- Kolkata
- West Bengal
- 700071
- India
Listings
Biography
ITC Limited engages in the fast-moving consumer goods, hotels, paperboards and paper, packaging, agri, and information technology (IT) businesses in India and internationally. The company primarily offers ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/31 12:11 |
| End of Day Share Price | 2021/07/30 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.