Market Cap
₹2.1t
Last Updated
2020/03/31 13:51 UTC
Data Sources
Company Financials +
Executive Summary
ITC Limited engages in the fast moving consumer goods, hotels, paperboards, paper and packaging, agri, and information technology businesses worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with outstanding track record and pays a dividend.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
14.7%
ITC
3.4%
IN Tobacco
8.9%
IN Market
1 Year Return
-42.4%
ITC
-41.4%
IN Tobacco
-30.6%
IN Market
Return vs Industry: ITC matched the Indian Tobacco industry which returned -41.4% over the past year.
Return vs Market: ITC underperformed the Indian Market which returned -30.6% over the past year.
Shareholder returns
| ITC | Industry | Market | |
|---|---|---|---|
| 7 Day | 14.7% | 3.4% | 8.9% |
| 30 Day | -13.1% | -12.3% | -24.8% |
| 90 Day | -27.9% | -24.4% | -29.4% |
| 1 Year | -41.3%-42.4% | -39.1%-41.4% | -29.2%-30.6% |
| 3 Year | -35.7%-39.0% | -37.8%-43.9% | -17.0%-21.5% |
| 5 Year | -16.7%-24.4% | -27.1%-38.3% | -5.4%-10.4% |
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
3 weeks ago | Simply Wall St
Can ITC Limited (NSE:ITC) Maintain Its Strong Returns?1 month ago | Simply Wall St
How Much is ITC Limited's (NSE:ITC) CEO Getting Paid?1 month ago | Simply Wall St
Has ITC Limited (NSE:ITC) Improved Earnings Growth In Recent Times?Valuation
Is ITC undervalued compared to its fair value and its price relative to the market?
14.06x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ITC (₹171.7) is trading above our estimate of fair value (₹157.8)
Significantly Below Fair Value: ITC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ITC is poor value based on its PE Ratio (14.1x) compared to the Tobacco industry average (13x).
PE vs Market: ITC is poor value based on its PE Ratio (14.1x) compared to the Indian market (9.2x).
Price to Earnings Growth Ratio
PEG Ratio: ITC is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: ITC is overvalued based on its PB Ratio (3.6x) compared to the IN Tobacco industry average (2.2x).
Next Steps
Future Growth
How is ITC forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
8.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ITC's forecast earnings growth (8.6% per year) is above the savings rate (6.5%).
Earnings vs Market: ITC's earnings (8.6% per year) are forecast to grow slower than the Indian market (19.6% per year).
High Growth Earnings: ITC's earnings are forecast to grow, but not significantly.
Revenue vs Market: ITC's revenue (9% per year) is forecast to grow faster than the Indian market (8.9% per year).
High Growth Revenue: ITC's revenue (9% 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 (25.2%)
Next Steps
Past Performance
How has ITC performed over the past 5 years?
9.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ITC has high quality earnings.
Growing Profit Margin: ITC's current net profit margins (29.7%) are higher than last year (26%).
Past Earnings Growth Analysis
Earnings Trend: ITC's earnings have grown by 9.3% per year over the past 5 years.
Accelerating Growth: ITC's earnings growth over the past year (22.2%) exceeds its 5-year average (9.3% per year).
Earnings vs Industry: ITC earnings growth over the past year (22.2%) exceeded the Tobacco industry -1.9%.
Return on Equity
High ROE: ITC's Return on Equity (25.9%) is considered high.
Next Steps
Financial Health
How is ITC's financial position?
Financial Position Analysis
Short Term Liabilities: ITC's short term assets (₹331.5B) exceed its short term liabilities (₹102.1B).
Long Term Liabilities: ITC's short term assets (₹331.5B) exceed its long term liabilities (₹25.2B).
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 0.9% to 0.02% over the past 5 years.
Debt Coverage: ITC's debt is well covered by operating cash flow (126650.1%).
Interest Coverage: ITC earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: ITC has a high level of physical assets or inventory.
Debt Coverage by Assets: ITC's debt is covered by short term assets (assets are 3496.3x debt).
Next Steps
Dividend
What is ITC's current dividend yield, its reliability and sustainability?
3.35%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ITC's dividend (3.35%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).
High Dividend: ITC's dividend (3.35%) is low compared to the top 25% of dividend payers in the Indian market (4.16%).
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 reasonably low payout ratio (47.1%), ITC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ITC's dividends in 3 years are forecast to be covered by earnings (66.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average board tenure
CEO
Sanjiv Puri (56yo)
3s
Tenure
₹61,600,000
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 ($USD817.49K) is about average for companies of similar size in the Indian market ($USD1.05M).
Compensation vs Earnings: Sanjiv's compensation has increased by more than 20% in the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & MD | 3yrs | ₹61.60m | 0.00051% ₹10.8m | |
| CFO & Executive Director | 4.17yrs | ₹32.02m | 0.0012% ₹26.0m | |
| Executive Director & President of FMCG Businesses | 1.25yrs | ₹4.53m | 0.0036% ₹76.2m | |
| Executive Director | 9.17yrs | ₹36.26m | 0.00081% ₹17.1m | |
| Independent Non-Executive Director | 14.67yrs | ₹7.25m | 0.0014% ₹29.3m | |
| Independent Non-Executive Director | 5.42yrs | ₹7.25m | no data | |
| Additional Independent Director | 0.67yr | no data | 0.0076% ₹159.6m | |
| Independent Non-Executive Director | 5.67yrs | ₹7.15m | 0.00082% ₹17.3m | |
| Independent Non-Executive Director | 7.42yrs | ₹7.30m | 0.00037% ₹7.8m | |
| Independent Non-Executive Director | 3.83yrs | ₹6.75m | no data |
4.8yrs
Average Tenure
68yo
Average Age
Experienced Board: ITC's board of directors are considered experienced (4.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ITC insiders have only sold shares 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: ₹2.111t
- Shares outstanding: 12.29b
- Website: https://www.itcportal.com
Number of Employees
Location
- ITC Limited
- Virginia House
- 37 Jawaharlal Nehru Road
- Kolkata
- West Bengal
- 700071
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ITC | BDL (Bourse de Luxembourg) | GDR EACH REP 1 ORD INR1 REG S | LU | USD | Nov 1993 | |
| 500875 | BSE (Mumbai Stock Exchange) | Yes | Ordinary Shares | IN | INR | Aug 1995 |
| ITC | NSEI (National Stock Exchange of India) | Yes | Ordinary Shares | IN | INR | Aug 1995 |
Biography
ITC Limited engages in the fast moving consumer goods, hotels, paperboards, paper and packaging, agri, and information technology businesses worldwide. The company primarily offers cigarettes and cigars; staples, spices, biscuits, confectionery and gums, snacks, noodles and pasta, beverages, dairy, ready to eat meals, chocolate, coffee, and frozen foods; personal care products; education and stationery products; safety matches; and incense sticks under various brands. It also retails formals and casual wear products, and other lifestyle products through the Wills Lifestyle stores. In addition, the company offers paper boards and specialty paper products; and packaging products, such as carton board, flexible, and tobacco packaging products, as well as operates approximately 100 hotels under the ITC Hotel, WelcomHotel, Fortune, and WelcomHeritage brands. Further, it exports feed ingredients, food grains, marine products, processed fruits, coffee products, leaf tobacco products, and spices; and offers IT services and solutions. Additionally, the company offers technology services and solutions for the consumer packaged goods, retail, manufacturing, hi-tech, banking, financial services and insurance, healthcare, airline, and hospitality industries. The company also provides property infrastructure and real estate maintenance, business consulting, real estate development, and agro-forestry and other related services; manages and operates golf courses; fabricates and assembles machinery for tube filling, cartoning, wrapping, conveyor solutions, and engineering services; and produces and commercializes seed potato technology products. ITC Limited was incorporated in 1910 and is based in Kolkata, India.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 13:51 |
| End of Day Share Price | 2020/03/31 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.