⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ITC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.3
| Stock Code | ITC | Market Cap | 3,80,826 Cr. | Current Price | 304 ₹ | High / Low | 444 ₹ |
| Stock P/E | 18.9 | Book Value | 54.7 ₹ | Dividend Yield | 4.72 % | ROCE | 36.9 % |
| ROE | 27.9 % | Face Value | 1.00 ₹ | DMA 50 | 327 ₹ | DMA 200 | 375 ₹ |
| Chg in FII Hold | -1.28 % | Chg in DII Hold | 1.49 % | PAT Qtr | 5,297 Cr. | PAT Prev Qtr | 5,113 Cr. |
| RSI | 37.1 | MACD | -6.07 | Volume | 1,76,61,905 | Avg Vol 1Wk | 2,69,06,025 |
| Low price | 300 ₹ | High price | 444 ₹ | PEG Ratio | 2.05 | Debt to equity | 0.00 |
| 52w Index | 2.74 % | Qtr Profit Var | 5.59 % | EPS | 27.8 ₹ | Industry PE | 42.7 |
📊 Financial Overview
- Revenue & Profitability: PAT rose from ₹5,113 Cr. to ₹5,297 Cr. (QoQ), showing steady earnings growth.
- Margins: ROE at 27.9% and ROCE at 36.9% are excellent, reflecting strong profitability and capital efficiency.
- Debt: Debt-to-equity ratio of 0.00 indicates a debt-free balance sheet, a major strength.
- Cash Flow: EPS of ₹27.8 is strong, supporting consistent shareholder returns.
💹 Valuation Metrics
- P/E Ratio: 18.9 vs Industry PE of 42.7 → undervalued compared to peers.
- P/B Ratio: Price ₹304 vs Book Value ₹54.7 → trading at a premium, reflecting investor confidence.
- PEG Ratio: 2.05 → suggests valuation is slightly expensive relative to growth.
- Intrinsic Value: Strong fundamentals and undervalued P/E make ITC attractive for long-term investors.
🏢 Business Model & Competitive Advantage
- ITC operates across FMCG, hotels, paperboards, packaging, and agri-business.
- Competitive advantage lies in diversified revenue streams, strong brand equity, and debt-free operations.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹300–320 range looks attractive given undervaluation and technical support levels.
- Long-Term Holding: Strong candidate for long-term portfolios due to robust ROE/ROCE, dividend yield, and diversified business model.
✅ Positive
- Debt-free balance sheet.
- Excellent ROE (27.9%) and ROCE (36.9%).
- Dividend yield of 4.72% provides strong income support.
- Undervalued compared to industry PE.
⚠️ Limitation
- PEG ratio (2.05) suggests valuation is expensive relative to growth.
- Stock trading below DMA 50 & DMA 200, indicating bearish technical trend.
- FII holdings decreased (-1.28%).
📉 Company Negative News
- FII outflows (-1.28%) show reduced foreign investor confidence.
- Stock price corrected from high of ₹444 to current ₹304.
📈 Company Positive News
- Quarterly PAT growth of 5.59% shows steady momentum.
- DII holdings increased (+1.49%), reflecting domestic institutional support.
- Strong dividend yield continues to attract income-focused investors.
🏦 Industry
- Industry PE at 42.7 highlights sector trades at higher multiples than ITC.
- FMCG sector growth supported by rising consumer demand and brand strength.
🔎 Conclusion
- ITC is fundamentally strong with excellent ROE/ROCE, debt-free status, and attractive dividend yield.
- Entry around ₹300–320 is favorable for long-term investors.
- Strong long-term holding potential given diversified business model and undervaluation relative to peers.