ITC Ltd logo

ITC Ltd

ITC NSE

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]

AI Verdict: HOLD Confidence: 5%

ITC trades at a reasonable PE of 17.4x with an attractive 4.98% dividend yield and debt-free balance sheet, but a sharp -40% TTM profit decline and -30% one-year stock CAGR signal near-term headwinds. The stock suits income-oriented investors but lacks a clear growth catalyst to justify aggressive accumulation.

Key Fundamentals

LargecapDiversified FMCGFMCG
Market Cap
3.6L Cr
Volatility
Moderate
P/E Ratio
17.55
EBITDA
₹26,371 Cr
Return on Equity
27.71%
Debt to Equity
0
Book Value
₹57.87
EPS
₹16.36
52W High
₹427
52W Low
₹275.05

Technical Indicators

Key Insights

Strengths

4
  • Company is almost debt free.
  • Stock is providing a good dividend yield of 4.99%.
  • Company has a good return on equity (ROE) track record: 3 Years ROE 35.3%
  • Company has been maintaining a healthy dividend payout of 74.5%

Weaknesses

2
  • The company has delivered a poor sales growth of 9.87% over past five years.
  • Working capital days have increased from 75.7 days to 144 days

Growth Rate

Revenue Growth
0.46% ↗
Net Income Growth
7.91% ↘
Cash Flow Change
2.61% ↗
ROE
5.56% ↘
ROCE
8.07% ↗
EBITDA Margin (Avg.)
-11.11% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 1d ago
HOLD
Risk medium

ITC trades at a reasonable PE of 17.4x with an attractive 4.98% dividend yield and debt-free balance sheet, but a sharp -40% TTM profit decline and -30% one-year stock CAGR signal near-term headwinds. The stock suits income-oriented investors but lacks a clear growth catalyst to justify aggressive accumulation.

Bull Case 8
  • Virtually debt-free balance sheet provides exceptional financial resilience and flexibility for future capital allocation
  • Dividend yield of 4.98% is among the highest in Indian large-caps, supported by a consistent 74.5% payout ratio
  • 3-year ROE of 35% demonstrates superior capital efficiency well above the FMCG sector median of ~20-25%
  • PE of 17.4x is attractive relative to FMCG peers like HUL (55x+) and Nestle India (60x+), offering a significant valuation discount
  • Market cap of Rs 3.65 lakh crore provides institutional-grade liquidity and index weight ensuring steady demand
  • 5-year compounded sales growth of 10% shows the FMCG, hotels, and agri diversification strategy is delivering top-line expansion
  • 5-year compounded profit growth of 10% confirms earnings have scaled alongside revenue over the medium term
  • 40% of analysts rate it a Buy and 43% rate it a Hold, indicating broad Street consensus that downside is limited
Bear Case 8
  • TTM compounded profit has declined -40%, indicating a severe earnings contraction that may not yet be fully priced in
  • 1-year stock CAGR of -30% reflects significant capital destruction and potential further momentum-driven selling
  • Working capital days have nearly doubled from 75.7 to 144 days, signaling deteriorating operational efficiency and cash conversion
  • 5-year sales CAGR of only 9.87% is modest for a company of this scale, suggesting limited organic growth levers
  • 3-year stock CAGR of -11% shows the stock has been a consistent underperformer over the medium term
  • 10-year stock CAGR of just 3% has barely kept pace with inflation, indicating prolonged value trap characteristics
  • TTM sales growth has decelerated to 5% from the 5-year average of 10%, suggesting growth momentum is fading
  • 17.14% of analysts recommend Sell, which is relatively elevated for a defensive large-cap name

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 1d ago
Headwinds 6
  • GST 2.0 cigarette tax up 60-65% Jun 3

    GST 2.0 effective Feb 1, 2026 raised cigarette taxes 60-65% for ITC, requiring ~35% MRP hikes — the steepest historically. Motilal Oswal expects 10% volume decline in FY27 and 19% cigarette EBIT drop, calling it the most disruptive regulatory reset in industry history.

  • Stock hits 52-week low ₹275 Jun 4

    ITC shares fell to ₹275.05 on Jun 4, down 23% YTD and 33% over one year from 52-week high of ₹428.55. Stock remains below key ₹300-310 resistance with support at ₹270-250 levels.

  • Motilal Oswal cuts target to ₹300 May 29

    Motilal Oswal maintained Neutral rating and cut target price to ₹300 (from ₹335), down from ₹515 in Nov 2025. Brokerage sees no near-term positive catalyst with flat volumes expected in FY28E.

  • Illicit trade threatens volumes Jun 3

    Illicit cigarettes already hold ~26% of total volumes in India. Steep tax hikes historically drive that share higher — illicit market gained nearly 1,000 bps between 2012-2021, and the unprecedented GST 2.0 increase enhances arbitrage for illegal operators.

  • FMCG sector underperformance Jun 1

    Nifty FMCG index declined 2.36% vs 0.70% for Nifty 50 on Jun 1, falling 6.08% over one month. Weak monsoon forecasts and MSCI rebalancing added to sector-wide pressure on rural demand-dependent companies.

  • Cigarette price hikes dent demand Jun 3

    ITC raised premium cigarette prices from ₹170 to ₹240 per pack (41% jump), with Classic/Gold Flake variants going to ₹25/stick from ₹18. Partial pass-through of 15-35% in price-sensitive 69mm segment leaves margin compression risk.

Positives 6
  • FMCG Others segment inflection Jun 3

    Non-cigarette FMCG revenue grew 15% YoY to ₹6,352 crore in Q4 FY26, with segment PBIT surging 51% to ₹526 crore. EBITDA margins expanded 200 bps to 11%, and digital-first portfolio growing 60% annually contributes ~₹1,000 crore ARR.

  • ₹14.50 total dividend for FY26 May 26

    ITC declared total FY26 dividend of ₹14.50/share (₹8 final + ₹6.50 interim), with 4.81% annual yield. Record date was May 27, with payment scheduled July 24-29 after AGM approval on July 23.

  • Smaller Classic at ₹17/stick Jun 17

    ITC launched 75mm Classic cigarette variant at ₹17/stick in packs of 10, targeting price-sensitive markets. Strategy allows volume protection by offering palatable price points without alienating consumers amid steep excise duty hikes.

  • Paperboards margin recovery Jun 3

    Paperboards segment PBIT grew 21.2% YoY to ₹245 crore in Q4 FY26, driven by Minimum Import Price of ₹67,200/MT on virgin multi-layer paperboard and moderating wood prices. Analysts estimate potential ₹10 billion EBIT boost by FY27.

  • Leveraged investors accumulating Jun 3

    MTF positions surged 86.5% to ₹1,794 crore between April and June 2026, making ITC the second-most leveraged stock on NSE's MTF book. Contrarian value buyers betting on recovery at P/E of 16.89x.

  • Q4 FY26 profit up, margins expand May 26

    ITC reported Q4 FY26 net profit of ₹5,113 crore (+5% YoY) with EBITDA margin expanding to 40.03% from 34.7%. Revenue from operations grew 17% to ₹21,695 crore; full-year net profit was ₹21,018 crore.

Neutral 5
  • ITC vs HUL comparison analysis Jun 16

    ITC's 3-year revenue CAGR of 3.6% exceeds HUL's 2.1%, with higher dividend yield (5.1% vs 1.99%). However, ITC shares fell 32% vs HUL's 8.4% decline over past year due to tobacco tax concerns.

  • 115th AGM set for July 23 Jun 12

    ITC will hold its 115th AGM via video conferencing on July 23, 2026 to approve the ₹8/share final dividend for FY26.

  • ₹29.10 crore block trade on NSE Jun 3

    Approximately 1,049,934 ITC shares traded in a block deal at ₹277.15/share on NSE, totaling ₹29.10 crore — characteristic of institutional-level activity.

  • Expert says hold with ₹377 target Jun 12

    G Chokkalingam of Equinomics Research gave Hold recommendation at CMP ₹285, noting management plans to hike cigarette prices and agriculture sector performing well. Maintains buy target of ₹377 implying 36% upside.

  • BofA conference attendance Jun 2 May 27

    ITC attended the BofA 2026 India Conference in Mumbai on June 2 for group and one-on-one investor sessions.

TL;DR: ITC is navigating its most challenging regulatory environment in years as GST 2.0 drove a 60-65% cigarette tax increase, sending shares to 52-week lows near ₹275 — down 33% in one year. The non-cigarette FMCG business is a bright spot with 15% revenue growth and 51% PBIT surge in Q4, but at ₹526 crore PBIT it remains dwarfed by the ₹5,797 crore cigarette segment now under severe pressure. Near-term trajectory hinges on Q1 FY27 results that will reveal the true volume and margin impact of tax hikes, with illicit trade share and pricing flexibility as key watchpoints.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
17,635
17,164
17,774
17,195
17,038
17,778
19,990
18,790
18,765
21,495
19,502
20,047
17,825
Expenses
11,011
10,494
11,320
10,985
10,736
11,233
13,438
12,428
12,246
14,678
12,807
13,165
10,900
Operating Profit
6,624
6,670
6,454
6,210
6,302
6,545
6,552
6,362
6,519
6,816
6,695
6,883
6,924
OPM %
38%
39%
36%
36%
37%
37%
33%
34%
35%
32%
34%
34%
39%
Other Income
683
722
674
820
868
771
690
803
15,391
751
739
322
700
Interest
12
10
10
12
11
10
15
10
11
16
20
19
29
Depreciation
461
442
453
384
385
403
416
416
411
423
435
431
422
PBT
6,833
6,940
6,665
6,635
6,774
6,903
6,811
6,740
21,489
7,128
6,979
6,754
7,173
Tax %
24%
25%
26%
19%
23%
25%
26%
26%
8%
25%
26%
26%
24%
Net Profit
5,243
5,190
4,965
5,407
5,191
5,177
5,054
5,013
19,808
5,343
5,187
5,018
5,470
EPS in Rs
4.16
4.1
3.93
4.28
4.1
4.08
3.99
3.94
15.76
4.19
4.09
3.94
4.3
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
38,817
39,192
42,768
43,449
48,340
49,388
49,257
60,645
70,919
67,932
75,323
78,868
Expenses
24,566
24,661
27,298
26,928
29,802
30,044
32,193
40,021
45,215
42,744
49,484
51,550
Operating Profit
14,252
14,531
15,470
16,521
18,537
19,344
17,065
20,623
25,704
25,188
25,839
27,318
OPM %
37%
37%
36%
38%
38%
39%
35%
34%
36%
37%
34%
35%
Other Income
1,229
1,483
1,759
2,240
2,080
2,417
2,577
1,910
2,098
3,330
17,795
2,511
Interest
91
78
49
115
71
81
58
60
78
39
45
85
Depreciation
1,028
1,077
1,153
1,236
1,397
1,645
1,646
1,732
1,809
1,518
1,646
1,711
PBT
14,362
14,859
16,026
17,409
19,150
20,035
17,938
20,740
25,915
26,961
41,943
28,033
Tax %
32%
36%
35%
34%
33%
22%
25%
25%
25%
23%
16%
25%
Net Profit
9,779
9,501
10,477
11,493
12,836
15,593
13,383
15,503
19,477
20,751
35,052
21,018
EPS in Rs
8.04
7.74
8.47
9.24
10.27
12.45
10.69
12.37
15.44
16.39
27.77
16.51
Div. Payout %
52%
73%
56%
56%
56%
82%
101%
93%
100%
84%
52%
88%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
802
805
1,215
1,220
1,226
1,229
1,231
1,232
1,243
1,248
1,251
1,253
Reserves
30,934
41,875
45,198
51,290
57,915
64,044
59,116
61,223
67,912
73,259
68,779
71,254
Borrowings
269
84
46
36
13
277
271
249
306
303
285
2,399
Other Liabilities
13,948
8,888
9,440
11,695
12,585
11,760
13,143
14,491
16,370
16,944
17,688
18,886
Total Liabilities
45,952
51,651
55,898
64,241
71,739
77,311
73,761
77,196
85,831
91,754
88,003
93,792
Fixed Assets
15,303
15,107
15,893
16,524
19,374
21,713
23,298
24,232
25,851
27,820
21,955
22,545
CWIP
2,700
2,560
3,730
5,508
4,136
3,256
4,011
3,226
3,003
2,861
1,091
1,499
Investments
6,943
11,748
17,581
22,053
25,043
28,663
24,871
24,841
29,415
31,114
34,720
38,128
Other Assets
21,006
22,237
18,694
20,156
23,185
23,678
21,580
24,898
27,561
29,959
30,237
31,620
Total Assets
45,952
51,651
55,898
64,241
71,739
77,311
73,761
77,196
85,831
91,754
88,003
93,792
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
9,843
9,799
10,627
13,169
12,583
14,690
12,527
15,776
18,878
17,179
17,627
18,464
Investing
-5,275
-3,921
-3,251
-7,114
-5,546
-6,174
5,740
-2,238
-5,732
1,563
-564
-2,321
Financing
-4,661
-5,613
-7,301
-6,221
-6,869
-8,181
-18,634
-13,580
-13,006
-18,551
-17,037
-16,147
Net Cash Flow
-93
266
75
-166
169
334
-367
-43
139
191
26
-4
Free Cash Flow
6,552
7,459
7,556
10,371
9,442
12,276
10,693
13,767
16,184
13,724
15,524
16,332
CFO/OP
100
102
104
116
99
102
99
101
98
92
93
91
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
19
18
21
23
30
19
19
15
15
22
23
18
Inventory Days
212
244
185
173
165
187
189
150
148
191
178
209
Days Payable
50
63
60
80
74
76
78
61
59
65
55
63
Cash Conversion Cycle
181
199
145
115
122
129
129
104
105
148
146
164
Working Capital Days
-6
51
45
31
32
35
36
31
20
39
45
144
ROCE %
47%
40%
36%
34%
34%
32%
28%
33%
39%
36%
37%
39%

Shareholding Pattern

As of Mar 2026
DIIs 49.15%
FIIs 34.83%
Public 13.34%
Others 2.64%
Government 0.04%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
29.22%
29.18%
29.14%
29.12%
43.35%
43.26%
40.95%
40.47%
40.54%
40.17%
39.87%
37.98%
37.39%
36.11%
34.83%
DIIs
38.67%
38.92%
39.85%
40.19%
39.16%
38.86%
30.35%
42.20%
42.08%
41.93%
41.93%
41.99%
43.77%
44.02%
44.59%
44.92%
45.19%
46.91%
47.41%
48.89%
49.15%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
Public
12.88%
13.97%
13.67%
14.31%
13.44%
12.99%
12.80%
12.71%
12.43%
12.36%
12.61%
12.62%
13.08%
13.30%
12.43%
12.40%
12.43%
12.58%
12.64%
12.42%
13.34%
Others
48.45%
47.11%
46.48%
45.50%
47.40%
48.15%
27.60%
15.87%
16.32%
16.56%
2.09%
2.09%
2.16%
2.17%
2.40%
2.48%
2.47%
2.50%
2.53%
2.54%
2.64%
No. of Shareholders
0
21,96,480
26,30,130
25,68,030
29,97,700
28,40,960
28,38,040
28,96,360
29,30,530
30,13,790
32,74,360
33,35,820
36,48,540
37,56,540
35,68,560
37,10,170
36,47,890
36,48,990
36,66,410
36,08,160
40,41,650

Documents

1
Concall - Jun 2019 Jun 2019
2
Concall - Sep 2020 Sep 2020
3
Concall - Nov 2020 Nov 2020
4
Concall - Dec 2020 Dec 2020
5
Concall - Feb 2021 Feb 2021

Frequently Asked Questions about ITC Ltd

What does ITC Ltd do?
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]
Where is ITC Ltd (ITC) listed?
ITC Ltd is listed on the Indian stock exchanges. It is listed on NSE: ITC and BSE: 500875. You can view its live share price, financials, and ratios on Tapetide.
Which sector does ITC Ltd belong to?
ITC Ltd operates in the Fast Moving Consumer Goods sector within the Diversified FMCG industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of ITC Ltd?
ITC Ltd has a market capitalisation of approximately ₹364600.58 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of ITC Ltd?
The Price-to-Earnings (PE) ratio of ITC Ltd is 17.55. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of ITC Ltd?
Over the past 52 weeks, ITC Ltd has traded between a low of ₹275.05 and a high of ₹427. This range helps investors understand the stock's price volatility and recent trading levels.
Does ITC Ltd pay dividends?
Yes, ITC Ltd has a dividend yield of 4.99%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of ITC Ltd?
ITC Ltd has a Return on Equity (ROE) of 27.71%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research ITC Ltd on Tapetide?
On Tapetide, you can view ITC Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

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]

Website itcportal.com
CEO Mr. Sanjiv Puri
Employees 22,041
Listed 1995-08-23
Face Value ₹ 1
Issued Size 12,52,89,59,772

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