ITC Ltd’s fundamental analysis highlights key financial metrics including a market capitalization of ₹6,18,208.17 crore, a PE ratio of 29.92, and a return on equity (ROE) of 28.4%. These figures reflect the company’s financial health and strong market valuation.
Content:
ITC Ltd Overview
ITC Ltd is a leading Indian conglomerate with diversified business interests in FMCG, hotels, paperboards, packaging, agri-business, and information technology. It is renowned for its wide range of popular brands and significant contributions to various sectors of the Indian economy.
The company has a market capitalization of ₹6,18,208.17 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 20.6% below its 52-week high of ₹511 and 0.25% above its 52-week low of ₹399. The all-time high of the stock is ₹511, while the all-time low is ₹29.4.
ITC Financial Results
The company demonstrated strong financial growth from FY 22 to FY 24, with sales increasing from ₹60,668 crore to ₹70,881 crore and EBITDA rising from ₹22,495 crore to ₹28,982 crore. The company maintained a stable OPM and improved EPS over the years.
- Revenue Trend: Sales increased from ₹60,668 crore in FY 22 to ₹70,937 crore in FY 23, and slightly decreased to ₹70,881 crore in FY 24, indicating a return to robust revenue growth.
- Equity and Liabilities: ITC Ltd’s equity and liabilities structure showcases financial stability and strategic choices. It balances equity financing and manageable debt, ensuring sustainability and capital allocation flexibility for projects.
- Profitability: Operating Profit Margin (OPM) increased from 34% in FY 22 to 36% in FY 23, and further to 37% in FY 24, reflecting improved operational efficiency and profitability.
- Earnings per Share (EPS): EPS increased from ₹12.37 in FY 22 to ₹15.5 in FY 23, and further to ₹16.42 in FY 24, indicating strong profit growth per share.
- Return on Net Worth (RoNW): RoNW improved from 24.52% in FY 22 to 27.74% in FY 23, and further to 28.27% in FY 24, indicating effective use of equity and overall profitability.
- Financial Position: The company’s financial position strengthened with EBITDA increasing from ₹22,495 crore in FY 22 to ₹27,645 crore in FY 23, and further to ₹28,982 crore in FY 24, showcasing robust financial health and effective management.
ITC Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 70,881 | 70,937 | 60,668 |
| Expenses | 44,627 | 45,272 | 40,010 |
| Operating Profit | 26,254 | 25,665 | 20,658 |
| OPM % | 37 | 36 | 34 |
| Other Income | 2,720 | 2,053 | 1,836 |
| EBITDA | 28,982 | 27,645 | 22,495 |
| Interest | 45.96 | 43.2 | 39.36 |
| Depreciation | 1,816 | 1,809 | 1,732 |
| Profit Before Tax | 27,112 | 25,866 | 20,723 |
| Tax % | 23.56 | 24.89 | 25.27 |
| Net Profit | 20,751 | 19,477 | 15,503 |
All values in ₹ Crores.
ITC Limited Company Metrics
ITC Ltd’s market capitalization is ₹6,18,208.17 crore, with a book value of ₹59.7 per share and a face value of ₹1.00. The company has an asset turnover ratio of 0.80, total debt of ₹303 crore, EBITDA of ₹28,982 crore, dividend yield of 2.78%, and EPS of ₹16.4.
Market Capitalization: Represents the total market value of ITC Ltd’s outstanding shares, amounting to ₹6,18,208.17 crore.
Book Value: ITC Ltd has a book value of ₹59.7 per share, representing the net asset value of the company divided by the number of outstanding shares.
Face Value: The face value of ITC Ltd’s shares is ₹1.00, which is the nominal value of each share as stated on the share certificate.
Asset Turnover: ITC Ltd has an asset turnover ratio of 0.80, indicating the company’s efficiency in using its assets to generate revenue.
Total Debt: ITC Ltd has a total debt of ₹303 crore, reflecting its financial leverage and obligations. Managing this debt effectively is crucial for the company’s long-term financial stability and growth.
EBITDA: ITC Ltd’s EBITDA increased from ₹22,495 crore in FY 22 to ₹27,645 crore in FY 23, and further to ₹28,982 crore in FY 24, indicating improving operational performance and profitability over these years.
Dividend Yield: ITC Ltd has a dividend yield of 2.78%, reflecting the annual dividend income relative to its current share price.
Earnings per Share (EPS): ITC Ltd has an EPS of ₹16.4, indicating the amount of profit attributed to each outstanding share of common stock, reflecting the company’s profitability for its shareholders.
ITC Stock Performance
ITC Ltd delivered notable returns on investment with 10.2% over 1 year, 32.7% over 3 years, and 14.7% over 5 years, highlighting strong long-term performance and consistent profitability for investors.
| Period | Return on Investment (%) |
| 1 Year | 10.2 |
| 3 Years | 32.7 |
| 5 Years | 14.7 |
Example: If an investor had invested ₹1,000 in ITC Ltd’s stock:
1 year ago, their investment would be worth ₹1,102.
3 years ago, their investment would have grown to ₹1,327.
5 years ago, their investment would have increased to approximately ₹1,147.
This highlights strong long-term performance and consistent profitability for investors.
ITC Peer Comparison
ITC Ltd. (CMP ₹494.35) has a market cap of ₹6,18,265.98 crore, P/E 30.22, ROE 28.43%, and dividend yield 2.78%. Godfrey Phillips, VST Industries, and NTC Industries show varied metrics, with notable 1-year returns of 106.98%, 19.58%, and 200.9%, respectively.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| ITC Ltd. | 494.35 | 618265.98 | 30.22 | 28.43 | 16.38 | 10.22 | 37.47 | 2.78 |
| Godfrey Phillips | 4441.05 | 23095.98 | 25.74 | 22.7 | 164.86 | 106.98 | 22.62 | 1.26 |
| VST Industries | 4154 | 6409.99 | 23.61 | 24.63 | 175.79 | 19.58 | 32.24 | 3.61 |
| NTC Industries | 267.2 | 319.14 | 46.73 | 7.14 | 4.24 | 200.9 | 8.18 | 0 |
ITC Shareholding Pattern
ITC Ltd’s shareholding pattern from FY 2023 to FY 2024 shows no promoter holdings. FIIs decreased from 43.35% to 40.95%, DIIs increased from 42.08% to 43.76%, and retail and others’ holdings increased from 14.56% to 15.27%.
| FY 2024 | FY 2023 | FY 2022 | |
| Promoters | 0 | 0 | 0 |
| FII | 40.95 | 43.35 | 11.99 |
| DII | 43.76 | 42.08 | 42.78 |
| Retail & others | 15.27 | 14.56 | 45.24 |
All values in %
ITC Ltd History
ITC Ltd, originally known as Imperial Tobacco Company of India Limited, was established in 1910. Initially focused on tobacco products, the company diversified its operations over the decades, gradually expanding into various sectors, including FMCG, hotels, paperboards, packaging, agri-business, and information technology.
In the 1970s, ITC rebranded itself as Indian Tobacco Company Limited and later as I.T.C. Limited, reflecting its Indian identity and diversification efforts. During this period, the company made significant investments in the hospitality sector, establishing a chain of luxury hotels under the ITC Hotels brand.
The 1980s and 1990s marked a phase of rapid expansion for ITC, as it ventured into the FMCG sector with the launch of branded packaged foods, personal care products, and lifestyle retailing. This diversification strategy helped ITC reduce its dependency on tobacco and tap into new growth opportunities.
In the 2000s, ITC continued to strengthen its FMCG portfolio, introducing popular brands such as Aashirvaad, Sunfeast, Bingo!, and Fiama. The company’s focus on sustainability and innovation further solidified its position as a market leader in multiple categories, contributing to its overall growth and profitability.
Today, ITC Ltd is a multifaceted conglomerate with a strong presence across various industries. Its commitment to sustainable business practices, coupled with a diversified product portfolio, has enabled ITC to maintain robust financial performance and achieve consistent growth, making it one of India’s most respected and valuable companies.
How To Invest In ITC Ltd Share?
Investing in ITC Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for ITC Ltd shares and place your buy order.
ITC Limited Fundamental Analysis – FAQs
ITC Ltd’s fundamental analysis highlights key financial metrics including a market capitalization of ₹6,18,208.17 crore, a PE ratio of 29.92, and a return on equity (ROE) of 28.4%. These figures reflect the company’s financial health and strong market valuation.
ITC Ltd has a market capitalization of ₹6,18,208.17 crore, reflecting its substantial market value and prominence in the Indian economy.
ITC Limited is a diversified Indian conglomerate operating in multiple sectors, including FMCG, hotels, paperboards, packaging, agri-business, and information technology.
The main shareholders of ITC include Foreign Institutional Investors (FIIs) holding 40.95%, Domestic Institutional Investors (DIIs) with 43.76%, and retail and other investors holding 15.27%. There are no promoter holdings in the company.
The main shareholders of ITC include FIIs with 40.95%, DIIs with 43.76%, and retail and other investors holding 15.27%. There are no promoter holdings in the company.
ITC operates in various industries, primarily in FMCG, hotels, paperboards, packaging, agri-business, and information technology.
To invest in ITC Ltd shares, open a brokerage account, complete KYC, deposit funds, and purchase shares through the stock exchange using your broker’s platform or app.
Determining if ITC Ltd is overvalued or Undervalued requires analyzing its current market price compared to its intrinsic value, considering factors like PE ratio, growth prospects, and industry comparisons. With a PE ratio of 29.92, ITC Ltd might be overvalued, reflecting a higher market price relative to its profitability.
We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.
