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ITC · FMCG

ITC

₹290.00
-0.35 (-0.12%)
Prev close
₹290.35
52w high
₹427.00
52w low
₹275.05
Market cap
₹363354.57 Cr

1Y price

Weekly close

AI beginner analysis

Summary

ITC is a leading Indian conglomerate with a dominant presence in the FMCG, cigarette, hotels, and agri-business sectors. It is widely recognized for its strong cash flows and consistent dividend payments to shareholders.

Bull case

The company's high Return on Equity (ROE) of 29% and very low debt indicate a robust and efficient balance sheet. Additionally, a high dividend yield of 5.5% provides a significant safety net and passive income for investors during market volatility.

Bear case

Recent data shows slightly negative revenue and earnings growth, suggesting a temporary slowdown in certain business segments. The cigarette business also remains vulnerable to periodic regulatory changes and tax hikes by the government.

Suitability for beginners

ITC is often considered a staple for retail portfolios due to its low volatility (negative Beta) and defensive nature. Its relatively low Price-to-Earnings (PE) ratio compared to industry peers makes it an accessible entry point for value-conscious beginners.

Long-term outlook

For long-term investors, the focus remains on the "FMCG Others" segment's roadmap to profitability and the potential value unlocking from the demerger of the hotel business. Its diverse portfolio allows it to benefit from the growing Indian consumption story over decades.

F&O notes

In the Futures and Options segment, ITC is known for high liquidity but relatively range-bound movements, making it popular for income-generating strategies like covered calls. However, beginners should be cautious as F&O involves high leverage and significant risk compared to cash equity investing.

Key metrics

P/E
17.58
P/B
5.01
ROE
29.34%
Debt/Equity
3.29
Beta
-0.08
Div yield
5.52%
Earnings ↑
-72.70%
Revenue ↑
-5.00%

News sentiment

positive
0.30
BearishNeutralBullish

Latest news

Headlines from across the web, sentiment-scored by AI.