ITC.NS
ITC Limited (ITC.NS), with a market capitalization of ₹6133.51 billion, is a major player in the Indian conglomerate sector, involved in a diverse range of industries including FMCG, hotels, paperboards, and packaging. The Price-to-Earnings (P/E) ratio of 29.86 reflects a moderate level of investor confidence in the company's earnings relative to its stock price.
The company displays a strong Return on Equity (ROE) of 28.65%, indicating efficient utilization of equity capital to generate substantial returns, which is a positive sign for existing and potential investors. With a low debt-to-equity ratio of 0.40, ITC manages its financial leverage well, minimizing risk, and maintaining flexibility for strategic initiatives.
ITC's operating margin stands at 30.10%, showcasing its ability to maintain profitability in its core operations, which is significant for sustaining long-term growth. The high current ratio of 3.05 signifies that ITC is well-positioned to cover its short-term liabilities, ensuring good liquidity in its financial practices.
While the revenue growth is healthy at 16.7%, earnings growth is sluggish at 1.8%, indicating potential challenges in scaling profitability at the same pace as its revenue expansion. Nevertheless, with an EBITDA margin of 35.23%, ITC maintains a strong structure for operational earnings, adding to its financial stability.
The company's institutional ownership of 46.43% underlines confidence from major investors in its future potential. Despite a higher price-to-book ratio of 8.15, which may suggest a premium market valuation, ITC's robust free cash flow of ₹96,529.31 crores bolsters its capacity to invest in future projects and sustain dividends.
Overall, ITC Limited offers a balanced investment opportunity, with strong operational margins and robust financial health, though prospective investors should be mindful of the slower earnings growth. This overview provides insights into ITC's financial landscape, aiding investors in making informed decisions regarding their investment strategy.
Last Updated: January 14, 2025
| Metric | Value |
|---|---|
| Market Cap | 5471.99 B |
| P/E Ratio | 26.67 |
| ROE | 28.64 % |
| Debt to Equity | 0.402 |
| Operating Margin | 30.10 % |
| Free Cash Flow | 96.53 B |
| Institutional Holdings | 42.23 % |
| Revenue Growth | 16.70 % |
ITC Limited's competitive landscape in diverse sectors:
- Cigarettes: Major competitors include Godfrey Phillips India and VST Industries.
- FMCG (Fast-Moving Consumer Goods): Hindustan Unilever Limited (HUL), Nestlé India, and Britannia Industries are key competitors.
- Hotels: The Oberoi Group and Taj Hotels are primary competitors.
- Paperboards, Paper and Packaging: Key competitors include JK Paper and Ballarpur Industries Limited.
- Agri-Business: Mahindra Agribusiness and Tata Agrico are notable competitors.
ITC Limited is well-diversified across various sectors, enhancing its resilience against market volatility. The company's robust growth in the FMCG sector and commitment to sustainable practices are promising for long-term investors. However, ITC faces significant competition from well-established players in each segment, which may impact its market share and revenue growth. Understanding these dynamics is crucial for potential investors considering ITC Limited as an investment opportunity.
Disclaimer: The information provided here is for educational and informational purposes only. While we strive to ensure the accuracy and reliability of the data, we do not make any guarantees regarding its completeness or accuracy. The analysis and metrics provided should not be considered as investment advice, and any actions taken based on this information are at your own risk. We do not assume responsibility for any financial losses or other damages incurred from the use of this data. Please consult with a qualified financial advisor before making any investment decisions.