NSEI:ITC

Stock Analysis Report

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Executive Summary

ITC Limited engages in the fast moving consumer goods, hotels, paperboards, paper and packaging, agri, and information technology (IT) businesses in India and internationally. More Details


Snowflake Analysis

Outstanding track record with flawless balance sheet 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.09%

ITC

-2.5%

IN Tobacco

-0.4%

IN Market


1 Year Return

-33.2%

ITC

-24.5%

IN Tobacco

2.3%

IN Market

Return vs Industry: ITC underperformed the Indian Tobacco industry which returned -24.3% over the past year.

Return vs Market: ITC underperformed the Indian Market which returned 2% over the past year.


Shareholder returns

ITCIndustryMarket
7 Day-0.09%-2.5%-0.4%
30 Day-4.6%-1.9%3.3%
90 Day-16.5%-5.9%6.7%
1 Year-29.8%-33.2%-20.5%-24.5%4.0%2.3%
3 Year-32.0%-37.7%-35.6%-43.3%0.6%-4.1%
5 Year-19.6%-29.2%-30.8%-42.7%42.3%31.8%

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

Valuation

Is ITC undervalued compared to its fair value and its price relative to the market?

14.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ITC (₹167.65) is trading above our estimate of fair value (₹136.02)

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 (14.2x) compared to the XA Tobacco industry average (14.1x).

PE vs Market: ITC is good value based on its PE Ratio (14.2x) compared to the Indian market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: ITC is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: ITC is overvalued based on its PB Ratio (3.2x) compared to the XA Tobacco industry average (2x).


Next Steps

Future Growth

How is ITC forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ITC's forecast earnings growth (12.6% per year) is above the savings rate (7.2%).

Earnings vs Market: ITC's earnings (12.6% per year) are forecast to grow slower than the Indian market (25.5% per year).

High Growth Earnings: ITC's earnings are forecast to grow, but not significantly.

Revenue vs Market: ITC's revenue (10.9% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: ITC's revenue (10.9% 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 (24%)


Next Steps

Past Performance

How has ITC performed over the past 5 years?

11.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ITC has high quality earnings.

Growing Profit Margin: ITC's current net profit margins (30.8%) are higher than last year (26.4%).


Past Earnings Growth Analysis

Earnings Trend: ITC's earnings have grown by 11% per year over the past 5 years.

Accelerating Growth: ITC's earnings growth over the past year (11.4%) exceeds its 5-year average (11% per year).

Earnings vs Industry: ITC earnings growth over the past year (11.4%) exceeded the Tobacco industry 2.4%.


Return on Equity

High ROE: ITC's Return on Equity (22.4%) is considered high.


Next Steps

Financial Health

How is ITC's financial position?


Financial Position Analysis

Short Term Liabilities: ITC's short term assets (₹395.1B) exceed its short term liabilities (₹95.6B).

Long Term Liabilities: ITC's short term assets (₹395.1B) exceed its long term liabilities (₹21.6B).


Debt to Equity History and Analysis

Debt Level: ITC's debt to equity ratio (0.01%) is considered satisfactory.

Reducing Debt: ITC's debt to equity ratio has reduced from 0.6% to 0.01% over the past 5 years.

Debt Coverage: ITC's debt is well covered by operating cash flow (200678.4%).

Interest Coverage: ITC's interest payments on its debt are well covered by EBIT (278.7x coverage).


Balance Sheet


Next Steps

Dividend

What is ITC current dividend yield, its reliability and sustainability?

6.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ITC's dividend (6.05%) is higher than the bottom 25% of dividend payers in the Indian market (0.57%).

High Dividend: ITC's dividend (6.05%) is in the top 25% of dividend payers in the Indian market (2.28%)


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: At its current payout ratio (86.3%), ITC's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ITC's dividends in 3 years are forecast to be covered by earnings (86.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Sanjiv Puri (57 yo)

3.67yrs

Tenure

₹68,613,000

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 ($USD933.66K) is below average for companies of similar size in the Indian market ($USD1.37M).

Compensation vs Earnings: Sanjiv's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sanjiv Puri
Chairman & MD3.67yrs₹68.61m0.00051%
₹ 10.5m
Rajendra Singhi
Executive VP2.67yrs₹14.88m0.0016%
₹ 32.4m
Rajiv Tandon
Executive Director4.75yrs₹35.06m0.0012%
₹ 25.3m
Sumant Bhargavan
Executive Director & President of FMCG Businesses1.92yrs₹23.24m0.0035%
₹ 71.5m
Nakul Anand
Executive Director9.75yrs₹42.11m0.00041%
₹ 8.4m
Supratim Dutta
CFO & Executive VP of Corporate Finance0.083yrno data0.0035%
₹ 72.1m
Saradindu Dutta
Head of Corporate Accountsno datano data0.0033%
₹ 68.6m
Samrat Banerjee
VP & Divisional CIOno datano data0.00023%
₹ 4.7m
Angamuthu Sundaram
General Counselno data₹10.90m0.00091%
₹ 18.8m
Arif Nazeeb
Head of Corporate Communications & Executive VPno datano data0.00069%
₹ 14.2m
Rahul Gandhi
Chief Marketing Officer0.50yrno data0.00020%
₹ 4.1m
S. Bose
Executive Vice President of HRno datano datano data

1.6yrs

Average Tenure

56.5yo

Average Age

Experienced Management: ITC's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Sanjiv Puri
Chairman & MD3.67yrs₹68.61m0.00051%
₹ 10.5m
Rajiv Tandon
Executive Director4.75yrs₹35.06m0.0012%
₹ 25.3m
Sumant Bhargavan
Executive Director & President of FMCG Businesses1.92yrs₹23.24m0.0035%
₹ 71.5m
Nakul Anand
Executive Director9.75yrs₹42.11m0.00041%
₹ 8.4m
Sunil Mathur
Independent Non-Executive Director15.25yrs₹7.00m0.0014%
₹ 28.6m
Arun Duggal
Independent Non-Executive Director6.08yrs₹6.80mno data
Anand Nayak
Additional Independent Director1.25yrs₹450.00k0.010%
₹ 212.0m
Shilabhadra Banerjee
Independent Non-Executive Director6.25yrs₹7.10mno data
Hemant Bhargava
Non-Executive Director2.25yrs₹5.01mno data
Meera Shankar
Independent Non-Executive Director8.08yrs₹7.10m0.00037%
₹ 7.6m
David Simpson
Non-Executive Director3.75yrs₹6.75mno data
Nirupama Rao
Independent Non-Executive Director4.5yrs₹6.60mno data

4.6yrs

Average Tenure

67yo

Average Age

Experienced Board: ITC's board of directors are considered experienced (4.6 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: ₹2.061t
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ITCBDL (Bourse de Luxembourg)GDR EACH REP 1 ORD INR1 REG SLUUSDNov 1993
500875BSE (Mumbai Stock Exchange)YesOrdinary SharesININRAug 1995
ITCNSEI (National Stock Exchange of India)YesOrdinary SharesININRAug 1995

Biography

ITC Limited engages in the fast moving consumer goods, hotels, paperboards, paper and packaging, agri, and information technology (IT) businesses in India and internationally. The company primarily offers ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 12:56
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.