ScoreWhy is ITC Ltd. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 28.29%
- Healthy long term growth as Net Sales has grown by an annual rate of 9.55%
- Company has a low Debt to Equity ratio (avg) at 0 times
2
Flat results in Mar 26
- PAT(Q) At Rs 5,407.19 cr has Fallen at -37.7%
- CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 3,008.79 cr
- NET SALES(Q) Lowest at Rs 17,824.68 cr
3
Stock is technically in a Mildly Bearish range
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
4
With ROE of 28.8, it has a Fair valuation with a 5 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -31.46%, its profits have fallen by -10.8%
- At the current price, the company has a high dividend yield of 5.1
5
High Institutional Holdings at 84.02%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -31.46% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to ITC should be less than 10%
- Overall Portfolio exposure to FMCG should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is ITC for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
ITC
-31.95%
-1.38
22.85%
Sensex
-1.65%
-0.64
13.06%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.72%
EBIT Growth (5y)
7.29%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.29
Sales to Capital Employed (avg)
1.00
Tax Ratio
24.59%
Dividend Payout Ratio
87.81%
Pledged Shares
0
Institutional Holding
83.40%
ROCE (avg)
45.54%
ROE (avg)
28.29%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
19
Price to Book Value
4.87
EV to EBIT
13.85
EV to EBITDA
12.93
EV to Capital Employed
6.49
EV to Sales
4.34
PEG Ratio
NA
Dividend Yield
5.14%
ROCE (Latest)
50.07%
ROE (Latest)
28.83%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CF(Y)
Highest at Rs 18,464.31 Cr
ROCE(HY)
Highest at 37.93%
DEBTORS TURNOVER RATIO(HY)
Highest at 22.75 times
-19What is not working for the Company
PAT(Q)
At Rs 4,081.88 cr has Fallen at -22.2%
NET SALES(Q)
At Rs 19,114.37 cr has Fallen at -11.07%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 3,008.79 cr
PBDIT(Q)
Lowest at Rs 5,180.86 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 27.10%
PBT LESS OI(Q)
Lowest at Rs 4,799.26 cr.
EPS(Q)
Lowest at Rs 3.51
Loading Valuation Snapshot...
Here's what is working for ITC
Operating Cash Flow - Annually
Highest at Rs 18,464.31 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Highest at 22.75 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for ITC
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 4,799.26 cr has Fallen at -25.54%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 4,081.88 cr has Fallen at -22.2%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 19,114.37 cr has Fallen at -11.07%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 5,180.86 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 27.10%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 4,799.26 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 3.51
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 3,008.79 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
