Overall Fundamental outlook

Business Operations:

Sector: Consumer Defensive
Industry: Tobacco

ITC Limited engages in the fast-moving consumer goods, hotels, paperboards and paper and packaging, agri, and information technology businesses in India and internationally. It primarily offers cigarettes and cigars; staples, spices, biscuits, confectionery and gums, snacks, noodles and pasta, beverages, dairy, ready to eat meals, chocolate, coffee, and frozen foods; personal care products; notebooks, pens and pencils, geometry boxes, erasers, sharpeners, rulers, wax and plastic crayons, sketch pens, and oil pastels; safety matches; and incense sticks under various brands. The company also operates hotels under the ITC Hotel, Mementos, Welcomhotel, Storii, Fortune, and WelcomHeritage brands; and Kaya Kalp spas. In addition, it offers virgin, recycled, coated barrier, cupstock base, liner, liquid packaging, anti-fungal, solid, and graphic boards, as well as specialty papers; overlay, surfacing/print base, barrier, and liner papers; plastic substitution products; and packaging products, such as carton board, flexible, tobacco, and green packaging products. Further, the company exports feed ingredients, food grains, marine products, processed fruits, coffee products, leaf tobacco products, and spices; and offers information technology services for the banking, financial services, consumer goods, manufacturing, travel, hospitality, and healthcare industries. Additionally, it provides property infrastructure and estate maintenance; engineering, procurement, and construction management; project management consultancy; cartooning and wrapping; conveyor; and business consulting, real estate development, and agro-forestry and other related services. The company also manages and operates golf courses; fabricates and assembles machinery for tube filling; and produces and commercializes seed potato technology products. ITC Limited was incorporated in 1910 and is headquartered in Kolkata, India.

Revenue projections:

Revenue projections for ITC
Revenue projections for ITC

Investors are expected to be cautious with ITC, as its revenues are projected to fall compared to last year. A decline in revenue often results in a negative impact on profitability, prompting concerns about the company's financial stability and making investors more conservative in their approach.

Financial Ratios:

currentRatio 3.04300
forwardPE 18.23415
debtToEquity 0.50700
earningsGrowth 0.02500
revenueGrowth -0.06000
grossMargins 0.55815
operatingMargins 0.32099
trailingEps 16.11000
forwardEps 17.73595

ITC's current ratio of 3.043 highlights the company's ability to easily cover its short-term debt using its available cash and assets. This indicates a strong liquidity position, ensuring ITC is unlikely to face difficulties in meeting immediate financial obligations.
ITC Limited's Forward PE ratio suggests that the stock is priced appropriately in relation to its earnings. Not being overpriced, it offers room for growth, signaling potential upside for investors looking for a stock with reasonable valuation and growth potential.
ITC's low earnings and revenue growth point to a possible reduction in profits. This trend suggests that the company may face difficulties in maintaining its profitability and could be a cause for concern among investors.
ITC's positive gross and operating margins suggest that the company is operating profitably. These strong margins indicate effective cost management and revenue generation, contributing to a solid financial foundation.
ITC's forward EPS being higher than its trailing EPS indicates that the company is expected to achieve greater profitability this financial year. This suggests improving earnings and a stronger financial position compared to the previous year's performance.

Price projections:

Price projections for ITC
Price projections for ITC

Price projections for ITC have been steadily revised downward over time, indicating growing concerns about the company's future performance. This downward trend reflects reduced optimism among analysts regarding ITC's ability to meet previous expectations.

Recommendation changes over time:

Recommendations trend for ITC
Recommendations trend for ITC


Analysts' buy bias toward ITC Limited suggests the stock is seen as a solid investment, potentially motivating investors to consider it for their portfolios. With this positive outlook, ITC Limited is likely to be viewed as a secure place to allocate funds, driving further interest in the stock.