ITC Ltd
NSE: ITC BSE: 500875
â‚ą264.65
+3.15 (1.20%)
Sat, 24 Oct 2026, 03:34 am
Market Cap (in Cr)327109.12
PE Ratio16.71
Dividend5.55
Consumer Non-Durables
Tobacco
24.5KITC Analysis
dividend
- Dividends per share have increased over the past 10 years.
- Dividends paid are well covered by earnings (2.1x coverage).
- Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
- Dividends per share have been stable in the past 10 years.
- ITC's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
- ITC's dividend is below the markets top 25% of dividend payers in India (3.08%).
future
- ITC is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
- Performance (ROE) is expected to be above the current IN Tobacco industry average.
- Cash flow for ITC is expected to increase but not above the 50% threshold in 2 years time.
- ITC's earnings are expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).
- ITC's earnings growth is positive but not above the India market average.
- ITC's earnings growth is positive but not above the low risk savings rate of 7.2%.
- ITC's earnings are expected to decrease over the next year.
- ITC's net income is expected to increase but not above the 50% threshold in 2 years time.
- A decline in ITC's performance (ROE) is expected over the next 3 years.
- ITC's revenue is expected to increase but not above the 50% threshold in 2 years time.
- ITC's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).
- ITC's revenue growth is positive but not above the India market average.
health
- ITC is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- ITC is profitable, therefore cash runway is not a concern.
- ITC is profitable, therefore cash runway is not a concern.
- Debt is well covered by operating cash flow (126650.1%, greater than 20% of total debt).
- Debt is covered by short term assets, assets are 3496.3x debt.
- ITC's cash and other short term assets cover its long term commitments.
- The level of debt compared to net worth has been reduced over the past 5 years (0.9% vs 0% today).
- ITC earns more interest than it pays, coverage of interest payments is not a concern.
- ITC's level of debt (0%) compared to net worth is satisfactory (less than 40%).
- High level of physical assets or inventory.
management
- The tenure for the ITC board of directors is about average.
- Sanjiv's remuneration is about average for companies of similar size in India.
- Sanjiv's compensation has been consistent with company performance over the past year, both up more than 20%.
- The tenure for the ITC management team is about average.
- ITC individual insiders have only sold shares in the past 3 months.
past
- ITC's 1-year earnings growth exceeds its 5-year average (22.2% vs 9.3%)
- ITC's year on year earnings growth rate has been positive over the past 5 years.
- ITC used its assets more efficiently than the IN Tobacco industry average last year based on Return on Assets.
- ITC has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- ITC's earnings growth has exceeded the Asia Tobacco industry average in the past year (22.2% vs -1.2%).
- ITC's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
value
- BSE:500875 is up 12.4% along with the Tobacco industry (13.1%) over the past month.
- BSE:500875 is up 12.4% outperforming the market in India which returned 8% over the past month.
- ITC's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
- ITC's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
- ITC is overvalued based on assets compared to the IN Tobacco industry average.
- ITC is poor value based on expected growth next year.
- ITC is overvalued based on earnings compared to the IN Tobacco industry average.
- ITC is overvalued based on earnings compared to the India market.
- 500875 underperformed the Tobacco industry which returned -29.8% over the past year.
- 500875 underperformed the Market in India which returned -14.5% over the past year.
