ITC Ltd

ITC Ltd

₹ 437 2.61%
23 May 11:03 a.m.
About

Established in 1910, ITC is the largest cigarette manufacturer and seller in the country. ITC operates in four business segments at present — FMCG Cigarettes, FMCG Others, Paperboards, Paper and Packaging, and Agri Business. [1]

Key Points

Business Segments
1) FMCG Cigarettes (42% in H1 FY25 vs 40% in FY22): [1] [2] The company holds an 80% market share in the organized domestic cigarette market, offering brands like Insignia, India Kings, Classic, Gold Flake, American Club, Wills Navy Cut, Players, Scissors, Capstan, Berkeley, etc. This vertical is the most profitable business of the company with 78% contribution towards PBIT. In Q2 FY25, the segment revenue grew by 7% YoY, supported by volume growth and a relatively stable tax regime. [3] [4] [5]

  • Market Cap 5,47,117 Cr.
  • Current Price 437
  • High / Low 495 / 378
  • Stock P/E 27.5
  • Book Value 56.0
  • Dividend Yield 3.31 %
  • ROCE 37.0 %
  • ROE 27.5 %
  • Face Value 1.00

Pros

  • Company is almost debt free.
  • Stock is providing a good dividend yield of 3.31%.
  • Company has a good return on equity (ROE) track record: 3 Years ROE 28.3%
  • Company has been maintaining a healthy dividend payout of 78.6%

Cons

  • Stock is trading at 7.86 times its book value
  • The company has delivered a poor sales growth of 8.81% over past five years.
  • Earnings include an other income of Rs.17,656 Cr.
  • Working capital days have increased from 60.7 days to 125 days

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.

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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025
16,556 18,489 17,108 17,705 17,635 17,164 17,774 17,195 17,038 18,457 19,990 18,790 18,765
10,956 12,412 10,849 11,000 11,011 10,494 11,320 10,985 10,736 11,709 13,438 12,428 12,246
Operating Profit 5,599 6,077 6,259 6,705 6,624 6,670 6,454 6,210 6,302 6,748 6,552 6,362 6,519
OPM % 34% 33% 37% 38% 38% 39% 36% 36% 37% 37% 33% 34% 35%
499 321 455 595 683 722 674 820 868 699 690 803 15,391
Interest 11 9 13 9 12 10 10 12 11 11 15 10 11
Depreciation 467 438 462 447 461 442 453 384 385 499 416 416 411
Profit before tax 5,620 5,950 6,239 6,844 6,833 6,940 6,665 6,635 6,774 6,938 6,811 6,740 21,489
Tax % 24% 25% 25% 26% 24% 25% 26% 19% 23% 25% 26% 26% 8%
4,266 4,472 4,682 5,080 5,243 5,190 4,965 5,407 5,191 5,177 5,054 5,013 19,808
EPS in Rs 3.40 3.56 3.73 4.03 4.16 4.10 3.93 4.28 4.10 4.08 3.99 3.94 15.76
Raw PDF

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
35,306 38,817 39,192 42,768 43,449 48,340 49,388 49,257 60,645 70,919 70,866 75,323
22,227 24,566 24,661 27,298 26,928 29,802 30,044 32,193 40,021 45,215 44,634 49,345
Operating Profit 13,080 14,252 14,531 15,470 16,521 18,537 19,344 17,065 20,623 25,704 26,233 25,978
OPM % 37% 37% 37% 36% 38% 38% 39% 35% 34% 36% 37% 34%
966 1,229 1,483 1,759 2,240 2,080 2,417 2,577 1,910 2,098 2,804 17,656
Interest 29 91 78 49 115 71 81 58 60 78 80 45
Depreciation 965 1,028 1,077 1,153 1,236 1,397 1,645 1,646 1,732 1,809 1,816 1,646
Profit before tax 13,052 14,362 14,859 16,026 17,409 19,150 20,035 17,938 20,740 25,915 27,140 41,943
Tax % 31% 32% 36% 35% 34% 33% 22% 25% 25% 25% 24% 16%
9,001 9,779 9,501 10,477 11,493 12,836 15,593 13,383 15,503 19,477 20,751 35,052
EPS in Rs 7.45 8.04 7.74 8.47 9.24 10.27 12.45 10.69 12.37 15.44 16.39 27.77
Dividend Payout % 54% 52% 73% 56% 56% 56% 82% 101% 93% 100% 84% 52%
Compounded Sales Growth
10 Years: 7%
5 Years: 9%
3 Years: 7%
TTM: 6%
Compounded Profit Growth
10 Years: 8%
5 Years: 5%
3 Years: 9%
TTM: -3%
Stock Price CAGR
10 Years: 8%
5 Years: 20%
3 Years: 19%
1 Year: 3%
Return on Equity
10 Years: 25%
5 Years: 26%
3 Years: 28%
Last Year: 27%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Equity Capital 795 802 805 1,215 1,220 1,226 1,229 1,231 1,232 1,243 1,248 1,251
Reserves 26,442 30,934 41,875 45,198 51,290 57,915 64,044 59,116 61,223 67,912 73,259 68,779
242 269 84 46 36 13 277 271 249 306 303 285
13,369 13,948 8,888 9,440 11,695 12,585 11,760 13,143 14,491 16,370 16,944 17,776
Total Liabilities 40,848 45,952 51,651 55,898 64,241 71,739 77,311 73,761 77,196 85,831 91,754 88,091
12,921 15,303 15,107 15,893 16,524 19,374 21,713 23,298 24,232 25,851 27,820 21,958
CWIP 3,117 2,700 2,560 3,730 5,508 4,136 3,256 4,011 3,226 3,003 2,861 1,088
Investments 7,284 6,943 11,748 17,581 22,053 25,043 28,663 24,871 24,841 29,415 31,114 34,720
17,526 21,006 22,237 18,694 20,156 23,185 23,678 21,580 24,898 27,561 29,959 30,325
Total Assets 40,848 45,952 51,651 55,898 64,241 71,739 77,311 73,761 77,196 85,831 91,754 88,091

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
7,344 9,843 9,799 10,627 13,169 12,583 14,690 12,527 15,776 18,878 17,179 17,627
-3,254 -5,275 -3,921 -3,251 -7,114 -5,546 -6,174 5,740 -2,238 -5,732 1,563 -396
-4,122 -4,661 -5,613 -7,301 -6,221 -6,869 -8,181 -18,634 -13,580 -13,006 -18,551 -17,037
Net Cash Flow -32 -93 266 75 -166 169 334 -367 -43 139 191 194

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Debtor Days 25 19 18 21 23 30 19 19 15 15 21 23
Inventory Days 228 212 244 185 173 165 187 189 150 148 190 178
Days Payable 58 50 63 60 80 74 76 78 61 59 64 55
Cash Conversion Cycle 195 181 199 145 115 122 129 129 104 105 146 146
Working Capital Days 9 -4 52 45 31 32 35 36 31 20 38 125
ROCE % 50% 47% 40% 36% 34% 34% 32% 28% 33% 39% 37% 37%

Shareholding Pattern

Numbers in percentages

Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025
12.68% 42.68% 42.99% 43.35% 43.62% 43.34% 43.26% 40.95% 40.47% 40.53% 40.17% 39.87%
42.82% 42.38% 42.19% 42.08% 41.92% 41.94% 41.98% 43.76% 44.02% 44.59% 44.91% 45.19%
0.00% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04%
44.50% 14.87% 14.78% 14.52% 14.41% 14.68% 14.71% 15.23% 15.47% 14.83% 14.88% 14.90%
No. of Shareholders 28,38,03628,96,35829,36,69229,30,52730,13,79332,74,36033,35,81536,48,53737,56,54135,68,56037,10,16936,47,886

* The classifications might have changed from Sep'2022 onwards. The new XBRL format added more details from Sep'22 onwards.

Classifications such as banks and foreign portfolio investors were not available earlier. The sudden changes in FII or DII can be because of these changes.

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