BSE : 540376 ; NSE: ITC

FINANCIAL YEAR : 2023-24

FINANCIAL
MODELING
REPORT

H.Tejkanta Singh
TABLE OF CONTENT
01 One Page Profile

02 Historical Financial Statement

03 Common Size Statement

04 Ratio Analysis

05 Forecasting

06 Beta Regression

07 Intrinsic Growth

08 WACC

09 DCF Valuation

10 Comparable Comps Valuation

11 Football Field Analysis

12 Var & Monte Carlo Stimulation

13 Dupont Analysis

14 Altman’s Z-Score Analysis

 ITC LTD - One Page Profile

ITC Limited is an Indian conglomerate company, headquartered in Kolkata. It has a presence across six business segments,
namely FMCG, hotels, agribusiness, information technology, paper products, and packaging. It generates a plurality of its
revenue from tobacco products. In terms of market capitalization, ITC is the second-largest FMCG company in India and the
third-largest tobacco company in the world. It employs 36,500 people at more than 60 locations across India. Its products
are available in 6 million retail outlets in India and exported to 90 countries.

INR(Crs)
Key Financial Metrics Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Share Price - 5Y
Total Sales 49387.7 49257.5 60644.5 70919.0 70866.2 600
Sales Growth(y-o-y) 2.17% -0.26% 23.12% 16.94% -0.07%
500
Gross Profit Margins (%) 50.74% 45.43% 43.85% 45.99% 47.77%
EBITDA Margins (%) 39.17% 34.64% 34.01% 36.24% 37.02% 400
EBIT Margins (%) 35.67% 31.19% 31.05% 33.58% 34.34% 300
Net Profit Margins (%) 26.68% 21.94% 22.41% 24.51% 25.33%
200
Earnigns Per Share (In Rs) 10.72 8.78 11.03 13.98 14.38
EPS Growth (y-o-y) 22.17% -18.10% 25.65% 26.77% 2.80% 100
Dividend Per Share 10.15 10.75 11.50 15.50 13.75 0
Dividend Growth 76.52% 5.91% 6.98% 34.78% -11.29%

Key Financial Ratios Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Volume - 5Y

4,00,00,000
Price to Earnings 16.02x 24.89x 22.72x 27.42x 29.80x 3,50,00,000
EV/EBITDA 19.43x 10.55x 15.50x 14.76x 18.36x 3,00,00,000
2,50,00,000
EV/Sales 7.45x 4.13x 5.37x 5.02x 6.66x 2,00,00,000
Price to Book Value 1.01x 1.03x 1.02x 1.01x 1.01x 1,50,00,000
1,00,00,000
Return on Equity(%) 18.19% 20.19% 17.91% 21.76% 25.13% 50,00,000
Return on Capital Employed (%) 28.98% 27.00% 25.44% 30.13% 34.40% 0

Dec-24
Oct-24
Sep-24
Jul-24

Apr-24
Mar-24

Feb-22
Jun-24

Jan-24
Dec-23
Oct-23
Sep-23
Jul-23

Apr-23
Mar-23
Jun-23

Jan-23

Oct-22
Nov-22

Aug-22
Jul-22
May-22
Apr-22

Jan-22

Oct-21
Nov-21

Aug-21
Jul-21
May-21
Apr-21
Feb-21
Jan-21

Oct-20
Nov-20

Aug-20
Jul-20
May-20
Apr-20
Feb-20
Dec-19
Top 10 Shareholders Total Shares Held (in cr) Shareholding (%) Market value (in cr) Shareholding Pattern
Tobacco Manufacturers (India) Limited 254.15 20.33% 119450.3
Life Insurance Corporation of India 189.69 15.17% 89152.5 Others 31.90%
Specified Undertaking of the Unit Trust of India 97.45 7.80% 45803.0
Myddleton Investment Company Limited 48.63 3.89% 22856.7 Public & Govt. 14.83%

QIB - Insurance Company Registered 31.68 2.53% 14888.3 MF 12.79%

GQG Partners Emerging Markets Equity Fund 22.89 1.83% 10756.1
FII 40.53%
General Insurance Corporation of India 21.68 1.73% 10188.9
The New India Assurance Company Limited 17.96 1.44% 8440.8
SBI Nifty 50 ETF 17.08 1.37%
Rothmans International Enterprises Limited 15.50 1.24% 7282.9

Manegernial Remuneration Designation Remuneration X of median salary Capital Structure

Mr. C. Vijayakumar CMD 16.31 326x Share Price as on XXX 470
Ms. Bhavani Balasubramanian Exec director (ED) 8.19 144x Number of Shares o/s 1,215.00
Mr. S. Madhavan ED & CFO 2.00 88x Market Capitalization 5,71,050.00
Dr. Mohan Chellappa ED 7.58 152x Less: Cash & Equivalents (7,218)
Add: Total Debt 303
Add: Minority Interest 0
Enterprise Value 5,64,136

Recent Updates

Demerger of ITC Hotels: ITC has approved the demerger of its hotel business. Post-demerger, ITC Hotels will be a separate entity listed on the NSE and BSE, with ITC retaining a 40% stake while
the remaining 60% will be distributed among shareholders. The demerger is expected to enhance value and optimize capital allocation.
FMCG Expansion: ITC plans to invest ₹20,000 crore in its FMCG business over the next five years, focusing on product innovation and premiumization. Recent launches include health-oriented
products under brands like Aashirvaad and Sunfeast.
 Historical Financial Statement - ITC LTD

BSE : 540376 | NSE : ITC

Years Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 LTM
BSE : 540376 | NSE : ITC
# Income Statement
Sales ₹ 38,817.2 ₹ 39,192.1 ₹ 42,767.6 ₹ 43,448.9 ₹ 48,339.6 ₹ 49,387.7 ₹ 49,257.5 ₹ 60,644.5 ₹ 70,919.0 ₹ 70,866.2 ₹ 72,173.9
Sales Growth - 0.97% 9.12% 1.59% 11.26% 2.17% -0.26% 23.12% 16.94% -0.07% 1.85%

COGS ₹ 19,688.4 ₹ 19,162.9 ₹ 21,949.1 ₹ 21,967.5 ₹ 24,216.0 ₹ 24,330.4 ₹ 26,881.5 ₹ 34,053.1 ₹ 38,302.1 ₹ 37,015.5 ₹ 45,841.2
COGS % Sales 50.72% 48.89% 51.32% 50.56% 50.10% 49.26% 54.57% 56.15% 54.01% 52.23% 63.51%

Gross Profit ₹ 19,128.77 ₹ 20,029.16 ₹ 20,818.48 ₹ 21,481.44 ₹ 24,123.63 ₹ 25,057.30 ₹ 22,375.94 ₹ 26,591.48 ₹ 32,616.90 ₹ 33,850.74 ₹ 26,332.69
Gross Margins 49.28% 51.11% 48.68% 49.44% 49.90% 50.74% 45.43% 43.85% 45.99% 47.77% 36.49%

Selling & General Expenses ₹ 4,877.15 ₹ 5,497.67 ₹ 5,348.97 ₹ 4,960.85 ₹ 5,586.24 ₹ 5,713.76 ₹ 5,311.16 ₹ 5,968.33 ₹ 6,912.64 ₹ 7,618.18
S&G Exp % Sales 12.56% 14.03% 12.51% 11.42% 11.56% 11.57% 10.78% 9.84% 9.75% 10.75% 0.00%

EBITDA ₹ 14,251.62 ₹ 14,531.49 ₹ 15,469.51 ₹ 16,520.59 ₹ 18,537.39 ₹ 19,343.54 ₹ 17,064.78 ₹ 20,623.15 ₹ 25,704.26 ₹ 26,232.56 ₹ 28,754.94
EBITDA Margins 36.71% 37.08% 36.17% 38.02% 38.35% 39.17% 34.64% 34.01% 36.24% 37.02% 39.84%

Interest ₹ 90.96 ₹ 78.13 ₹ 49.03 ₹ 115.01 ₹ 71.40 ₹ 81.38 ₹ 57.97 ₹ 59.99 ₹ 77.77 ₹ 80.06 ₹ 47.31
Interest % Sales 0.23% 0.20% 0.11% 0.26% 0.15% 0.16% 0.12% 0.10% 0.11% 0.11% 0.07%

Depreciation ₹ 1,027.96 ₹ 1,077.40 ₹ 1,152.79 ₹ 1,236.28 ₹ 1,396.61 ₹ 1,644.91 ₹ 1,645.59 ₹ 1,732.41 ₹ 1,809.01 ₹ 1,816.39 ₹ 1,872.50
Depreciation%Sales 2.65% 2.75% 2.70% 2.85% 2.89% 3.33% 3.34% 2.86% 2.55% 2.56% 2.59%

Earnings Before Tax ₹ 13,132.70 ₹ 13,375.96 ₹ 14,267.69 ₹ 15,169.30 ₹ 17,069.38 ₹ 17,617.25 ₹ 15,361.2 ₹ 18,830.8 ₹ 23,817.5 ₹ 24,336.1 ₹ 26,835.1
EBT % Sales 33.83% 34.13% 33.36% 34.91% 35.31% 35.67% 31.19% 31.05% 33.58% 34.34% 37.18%

Tax ₹ 4,596.4 ₹ 5,358.2 ₹ 5,549.1 ₹ 5,916.4 ₹ 6,313.9 ₹ 4,441.8 ₹ 4,555.3 ₹ 5,237.3 ₹ 6,438.4 ₹ 6,388.5 ₹ 6,389.7
Effective Tax Rate 35.00% 40.06% 38.89% 39.00% 36.99% 25.21% 29.65% 27.81% 27.03% 26.25% 23.81%

Net Profit ₹ 8,536.3 ₹ 8,017.8 ₹ 8,718.6 ₹ 9,252.9 ₹ 10,755.5 ₹ 13,175.5 ₹ 10,805.9 ₹ 13,593.4 ₹ 17,379.1 ₹ 17,947.6 ₹ 20,445.4
Net Margins 21.99% 20.46% 20.39% 21.30% 22.25% 26.68% 21.94% 22.41% 24.51% 25.33% 28.33%

No of Equity Shares 1202.33 1207.08 1214.74 1220.43 1225.86 1229.22 1230.88 1232.33 1242.8 1248.47 1248.47

Earnings per Share ₹ 7.10 ₹ 6.64 ₹ 7.18 ₹ 7.58 ₹ 8.77 ₹ 10.72 ₹ 8.78 ₹ 11.03 ₹ 13.98 ₹ 14.38 ₹ 16.38
EPS Growth % -6.44% 8.06% 5.63% 15.72% 22.17% -18.10% 25.65% 26.77% 2.80% 13.92%

Dividend per Share ₹ 4.17 ₹ 5.67 ₹ 4.8 ₹ 5.1 ₹ 5.8 ₹ 10.1 ₹ 10.8 ₹ 11.5 ₹ 15.5 ₹ 13.7 -
Dividend payout ratio 58.69% 85.31% 66.18% 67.93% 65.54% 94.70% 122.45% 104.25% 110.84% 95.65% 0.00%

Retained Earnings 41.31% 14.69% 33.82% 32.07% 34.46% 5.30% 0.00% 0.00% 0.00% 4.35% 100.00%

# Balance Sheet
Equity Share Capital ₹ 801.6 ₹ 804.7 ₹ 1,214.7 ₹ 1,220.4 ₹ 1,225.9 ₹ 1,229.2 ₹ 1,230.9 ₹ 1,232.3 ₹ 1,242.8 ₹ 1,248.5
Reserves ₹ 30,933.9 ₹ 41,874.8 ₹ 45,198.2 ₹ 51,289.7 ₹ 57,915.0 ₹ 64,044.0 ₹ 59,116.5 ₹ 61,223.2 ₹ 67,912.5 ₹ 73,258.5
Borrowings ₹ 268.8 ₹ 83.8 ₹ 45.7 ₹ 35.9 ₹ 13.4 ₹ 277.5 ₹ 270.8 ₹ 249.4 ₹ 306.0 ₹ 303.4
Other Liabilities ₹ 13,947.9 ₹ 8,888.0 ₹ 9,439.7 ₹ 11,694.9 ₹ 12,584.7 ₹ 11,760.0 ₹ 13,142.6 ₹ 14,491.0 ₹ 16,369.7 ₹ 16,943.5
Total Liabilities ₹ 45,952.2 ₹ 51,651.3 ₹ 55,898.3 ₹ 64,240.9 ₹ 71,739.0 ₹ 77,310.8 ₹ 73,760.8 ₹ 77,196.0 ₹ 85,831.0 ₹ 91,754.0

Fixed Assets Net Block ₹ 15,303.3 ₹ 15,106.6 ₹ 15,893.5 ₹ 16,524.0 ₹ 19,374.2 ₹ 21,713.3 ₹ 23,298.5 ₹ 24,231.6 ₹ 25,851.3 ₹ 27,820.2
Capital Work in Progress ₹ 2,700.2 ₹ 2,559.7 ₹ 3,729.9 ₹ 5,508.3 ₹ 4,136.4 ₹ 3,256.5 ₹ 4,011.3 ₹ 3,225.5 ₹ 3,003.3 ₹ 2,860.8
Investments ₹ 6,942.8 ₹ 11,747.6 ₹ 17,581.4 ₹ 22,052.9 ₹ 25,043.5 ₹ 28,663.4 ₹ 24,870.9 ₹ 24,841.0 ₹ 29,415.0 ₹ 31,114.0
Other Assets ₹ 2,540.8 ₹ 5,194.8 ₹ 5,135.8 ₹ 7,078.8 ₹ 7,138.1 ₹ 4,958.5 ₹ 4,022.2 ₹ 6,917.4 ₹ 7,953.9 ₹ 4,562.6
Total Non Current Assets ₹ 27,487.1 ₹ 34,608.8 ₹ 42,340.5 ₹ 51,163.9 ₹ 55,692.2 ₹ 58,591.6 ₹ 56,202.9 ₹ 59,215.6 ₹ 66,223.4 ₹ 66,357.6

Receivables ₹ 1,982.1 ₹ 1,917.2 ₹ 2,474.3 ₹ 2,682.3 ₹ 4,035.3 ₹ 2,562.5 ₹ 2,501.7 ₹ 2,461.9 ₹ 2,956.2 ₹ 4,025.8
Inventory ₹ 8,586.9 ₹ 9,062.1 ₹ 8,116.1 ₹ 7,495.1 ₹ 7,859.6 ₹ 8,879.3 ₹ 10,397.2 ₹ 10,864.2 ₹ 11,771.2 ₹ 14,152.9
Cash & Bank ₹ 7,896.2 ₹ 6,063.3 ₹ 2,967.4 ₹ 2,899.6 ₹ 4,152.0 ₹ 7,277.3 ₹ 4,659.0 ₹ 4,654.4 ₹ 4,880.2 ₹ 7,217.7
Total Current Assets ₹ 18,465.2 ₹ 17,042.6 ₹ 13,557.8 ₹ 13,077.0 ₹ 16,046.9 ₹ 18,719.2 ₹ 17,557.9 ₹ 17,980.5 ₹ 19,607.5 ₹ 25,396.4

Total Assets ₹ 45,952.2 ₹ 51,651.3 ₹ 55,898.3 ₹ 64,240.9 ₹ 71,739.0 ₹ 77,310.8 ₹ 73,760.8 ₹ 77,196.0 ₹ 85,831.0 ₹ 91,754.0

Check TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE

# Cash Flow Statements

Cash from Operating Activities ₹ 9,843.2 ₹ 9,799.0 ₹ 10,627.3 ₹ 13,169.4 ₹ 12,583.4 ₹ 14,689.7 ₹ 12,527.0 ₹ 15,775.5 ₹ 18,877.6 ₹ 17,178.9

Cash from Investing Activities (₹ 5,275.4) (₹ 3,920.7) ₹ 2.0 (₹ 7,113.9) (₹ 5,545.7) (₹ 6,174.0) ₹ 5,740.0 (₹ 2,238.5) (₹ 5,732.3) ₹ 1,562.8

Cash from Financing Activities (₹ 4,661.0) (₹ 5,612.5) (₹ 7,301.0) (₹ 6,221.1) (₹ 6,868.6) (₹ 8,181.5) (₹ 18,633.8) (₹ 13,580.5) (₹ 13,006.0) (₹ 18,551.0)

Net Cash Flow (₹ 93.3) ₹ 265.8 ₹ 3,328.3 (₹ 165.6) ₹ 169.1 ₹ 334.2 (₹ 366.9) (₹ 43.5) ₹ 139.2 ₹ 190.7
 BSE : 540376 | NSE : ITC

Common Size Income Statement - ITC LTD

Particulars Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Raw Material Cost 38.66% 35.12% 36.14% 34.13% 36.46% 36.54% 42.18% 44.64% 41.41% 39.28%
Change in Inventory 0.61% 0.50% -1.39% -2.37% 0.42% 1.42% 1.31% 1.13% 0.51% 0.83%
Power and Fuel 1.57% 1.46% 1.37% 1.50% 1.54% 1.58% 1.42% 1.47% 1.74% 1.58%
Other Mfr. Exp 3.95% 4.04% 3.94% 3.91% 3.87% 3.86% 3.22% 3.11% 3.28% 3.55%
Employee Cost 7.14% 8.78% 8.49% 8.66% 8.64% 8.70% 9.06% 8.06% 8.09% 8.66%
Selling and admin 9.99% 10.87% 9.77% 9.10% 9.41% 9.09% 8.60% 8.01% 7.90% 8.72%
Other Expenses 2.58% 3.15% 2.73% 2.32% 2.15% 2.48% 2.18% 1.83% 1.85% 2.03%
Other Income 3.17% 3.78% 4.11% 5.16% 4.30% 4.89% 5.23% 3.15% 2.96% 3.96%
Depreciation 2.65% 2.75% 2.70% 2.85% 2.89% 3.33% 3.34% 2.86% 2.55% 2.56%
Interest 0.23% 0.20% 0.11% 0.26% 0.15% 0.16% 0.12% 0.10% 0.11% 0.11%
Profit before tax 37.00% 37.91% 37.47% 40.07% 39.62% 40.57% 36.42% 34.20% 36.54% 38.30%
Tax 11.84% 13.67% 12.97% 13.62% 13.06% 8.99% 9.25% 8.64% 9.08% 9.01%
Net profit 24.89% 23.84% 24.06% 25.94% 26.05% 30.99% 26.72% 25.13% 27.06% 28.87%
Dividend Amount 12.91% 17.45% 13.49% 14.47% 14.58% 25.26% 26.86% 23.37% 27.16% 24.22%
EBITDA

Common Size Balance Sheet - ITC LTD

Particulars Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Total Liabilities 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Equity Share Capital 33.30% 29.25% 28.43% 25.72% 27.01% 28.09% 31.59% 31.39% 30.12% 30.32%
Reserves 5.88% 4.96% 6.67% 8.57% 5.77% 4.21% 5.44% 4.18% 3.50% 3.12%
Borrowings 15.11% 22.74% 31.45% 34.33% 34.91% 37.08% 33.72% 32.18% 34.27% 33.91%
Other Liabilities 45.71% 43.05% 33.44% 31.38% 32.32% 30.63% 29.26% 32.25% 32.11% 32.65%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Net Block 33.30% 29.25% 28.43% 25.72% 27.01% 28.09% 31.59% 31.39% 30.12% 30.32%
Capital Work in Progress 5.88% 4.96% 6.67% 8.57% 5.77% 4.21% 5.44% 4.18% 3.50% 3.12%
Investments 15.11% 22.74% 31.45% 34.33% 34.91% 37.08% 33.72% 32.18% 34.27% 33.91%
Other Assets 45.71% 43.05% 33.44% 31.38% 32.32% 30.63% 29.26% 32.25% 32.11% 32.65%
Receivables 4.31% 3.71% 4.43% 4.18% 5.62% 3.31% 3.39% 3.19% 3.44% 4.39%
Inventory 18.69% 17.54% 14.52% 11.67% 10.96% 11.49% 14.10% 14.07% 13.71% 15.42%
Cash & Bank 17.18% 11.74% 5.31% 4.51% 5.79% 9.41% 6.32% 6.03% 5.69% 7.87%
 BSE : 540376 | NSE : ITC

Ratio Analysis of - ITC LTD

Years Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Trend Mean Median

SalesGrowth 1.0% 9.1% 1.6% 11.3% 2.2% -0.3% 23.1% 16.9% 8.1% 5.6%
GrossMargin 49.3% 51.1% 48.7% 49.4% 49.9% 50.7% 45.4% 43.8% 48.6% 49.4%
EBITDA Growth 102.0% 106.5% 106.8% 112.2% 104.3% 88.2% 120.9% 124.6% 108.2% 106.6%
EBIT Growth 1.9% 6.7% 6.3% 12.5% 3.2% -12.8% 22.6% 26.5% 8.4% 6.5%
Net Profit Growth 1.9% 6.7% 6.3% 12.5% 3.2% -12.8% 22.6% 26.5% 8.4% 6.5%
Dividend Growth 36.0% -16.2% 8.4% 11.7% 76.5% 5.9% 7.0% 34.8% 20.5% 10.0%

Gross Margin 49.3% 51.1% 48.7% 49.4% 49.9% 50.7% 45.4% 43.8% 46.0% 48.3% 49.3%
Operating Margin 36.7% 37.1% 36.2% 38.0% 38.3% 39.2% 34.6% 34.0% 36.2% 36.7% 36.7%
EBITDA Margin 36.7% 37.1% 36.2% 38.0% 38.3% 39.2% 34.6% 34.0% 36.2% 36.7% 36.7%
EBIT Margin 36.5% 36.9% 36.1% 37.8% 38.2% 39.0% 34.5% 33.9% 36.1% 36.5% 36.5%
EBT Margin 33.8% 34.1% 33.4% 34.9% 35.3% 35.7% 31.2% 31.1% 33.6% 33.7% 33.8%
Net Profit Margin 22.0% 20.5% 20.4% 21.3% 22.2% 26.7% 21.9% 22.4% 24.5% 22.4% 22.0%

SalesExpenses%Sales 12.6% 14.0% 12.5% 11.4% 11.6% 11.6% 10.8% 9.8% 9.7% 11.6% 11.6%
Depreciation%Sales 2.6% 2.7% 2.7% 2.8% 2.9% 3.3% 3.3% 2.9% 2.6% 2.9% 2.8%
OperatingIncome%Sales 36.5% 36.9% 36.1% 37.8% 38.2% 39.0% 34.5% 33.9% 36.1% 36.5% 36.5%

Return on Capital Employed 41.3% 31.5% 30.8% 29.1% 29.0% 27.0% 25.4% 30.1% 34.4% 31.0% 30.1%
Retained Earnings% 41.3% 14.7% 33.8% 32.1% 34.5% 5.3% 0.0% 0.0% 0.0% 18.0% 14.7%
Return on Equity% 26.9% 18.8% 18.8% 17.6% 18.2% 20.2% 17.9% 21.8% 25.1% 20.6% 18.8%
Self Sustained Growth Rate 11.1% 2.8% 6.4% 5.7% 6.3% 1.1% 0.0% 0.0% 0.0% 3.7% 2.8%
Interest Coverage Ratio 145.38x 172.20x 292.00x 132.90x 240.07x 217.48x 265.99x 314.90x 307.26x 23201.8% 24006.7%

Debtor Turnover Ratio 144.41x 467.80x 935.42x 1,209.60x 3,596.69x 178.01x 181.88x 243.12x 231.73x 79874.1% 24312.3%
Creditor Turnover Ratio 2.78x 4.41x 4.53x 3.72x 3.84x 4.20x 3.75x 4.18x 4.33x 397.2% 418.5%
Inventory Turnover 4.52x 4.32x 5.27x 5.80x 6.15x 5.56x 4.74x 5.58x 6.02x 533.0% 556.2%
Fixed Asset Turnover 2.54x 2.59x 2.69x 2.63x 2.50x 2.27x 2.11x 2.50x 2.74x 250.9% 253.7%
Capital Turnover Ratio 1.22x 0.92x 0.92x 0.83x 0.82x 0.76x 0.82x 0.97x 1.03x 0.92x 0.92x

Debtor Days 2.53x 0.78x 0.39x 0.30x 0.10x 2.05x 2.01x 1.50x 1.58x 1.25x 1.50x
Payable Days 131.15x 82.78x 80.56x 98.24x 95.02x 86.91x 97.39x 87.22x 84.25x 93.73x 87.22x
Inventory Days 80.74x 84.40x 69.27x 62.96x 59.35x 65.62x 77.04x 65.39x 60.58x 69.48x 65.62x
Cash Conversion Cycle -47.88x 2.40x -10.91x -34.98x -35.58x -19.24x -18.34x -20.33x -22.09x -22.99x -20.33x

CFO/Sales 25.36% 25.00% 24.85% 30.31% 26.03% 29.74% 25.43% 26.01% 26.62% 26.6% 26.0%
CFO/Total Assets 21.42% 18.97% 19.01% 20.50% 17.54% 19.00% 16.98% 20.44% 21.99% 19.5% 19.0%
CFO/Total Debt 3661.90% 11696.16% 23244.34% 36663.14% 93626.56% 5294.53% 4625.40% 6324.37% 6168.33% 21256.1% 6324.4%

Price to Earnings 32.95 39.05 33.70 33.88 16.02 24.89 22.72 27.42 29.80 28.94 29.80
EV/EBITDA 11.68 11.71 21.82 18.70 19.43 10.55 15.50 14.76 18.36 15.84 15.50
EV/Sales 4.29 4.34 7.89 7.11 7.45 4.13 5.37 5.02 6.66 5.81 5.37
Price to Book Value 1.05 1.04 1.01 1.01 1.01 1.03 1.02 1.01 1.01 1.02 1.01
 BSE : 540376 | NSE : ITC
ITC LTD - Sales Forecasting ITC LTD - EBITDA Forecasting
Year Weight Year Sales Sales Growth Year Weight Year EBITDA EBITDA Growth
1 2015A 38817.15 1 2015A 14,251.6
2 2016A 39192.1 0.97% 2 2016A 14,531.5 1.96%
3 2017A 42767.6 9.12% 3 2017A 15,469.5 6.46%
4 2018A 43448.94 1.59% 4 2018A 16,520.6 6.79%
5 2019A 48339.58 11.26% 5 2019A 18,537.4 12.21%
6 2020A 49387.7 2.17% 6 2020A 19,343.5 4.35%
7 2021A 49257.45 -0.26% 7 2021A 17,064.8 -11.78%
8 2022A 60644.54 23.12% 8 2022A 20,623.2 20.85%
9 2023A 70919.03 16.94% 9 2023A 25,704.3 24.64%
10 2024A 70866.22 -0.07% 10 2024A 26,232.6 2.06%
11 2025E 71,977.0 1.57% 11 2025E 25,969.4 -1.00%
12 2026E 75,724.8 5.21% 12 2026E 27,267.8 5.00%
13 2027E 79,472.6 4.95% 13 2027E 28,566.3 4.76%
14 2028E 83,220.4 4.72% 14 2028E 29,864.7 4.55%
15 2029E 86,968.2 4.50% 15 2029E 31,163.2 4.35%

Sales Forecasting
EBITDA Forecasting
100000
35,000.0
90000
80000 30,000.0
70000
25,000.0
60000
50000 20,000.0

40000 15,000.0
30000
10,000.0
20000
10000 5,000.0
0
0.0

ITC LTD - Earnings per Share Forecasting ITC LTD -Net Profit Forecasting
Year Weight Year EPS ESP Growth Year Weight Year Net Profit Net Profit Growth
1 2015A 7.1 1 2015A 8,536.3
2 2016A 6.6 -6.44% 2 2016A 8,017.8 -6.07%
3 2017A 7.2 8.06% 3 2017A 8,718.6 8.74%
4 2018A 7.6 5.63% 4 2018A 9,252.9 6.13%
5 2019A 8.8 15.72% 5 2019A 10,755.5 16.24%
6 2020A 10.7 22.17% 6 2020A 13,175.5 22.50%
7 2021A 8.8 -18.10% 7 2021A 10,805.9 -17.98%
8 2022A 11.0 25.65% 8 2022A 13,593.4 25.80%
9 2023A 14.0 26.77% 9 2023A 17,379.1 27.85%
10 2024A 14.4 2.80% 10 2024A 17,947.6 3.27%
11 2025E 14.3 -0.26% 11 2025E 18,606.0 3.67%
12 2026E 15.2 5.99% 12 2026E 20,673.9 11.11%
13 2027E 16.1 5.65% 13 2027E 20,665.2 -0.04%
14 2028E 16.9 5.35% 14 2028E 22,852.5 10.58%
15 2029E 17.8 5.08% 15 2029E 24,446.8 6.98%

EPS Forecasting Net Profit Forecasting

20.0 30,000.0
18.0
25,000.0
16.0
14.0 20,000.0
12.0
15,000.0
10.0
8.0 10,000.0
6.0
5,000.0
4.0
2.0 0.0
0.0
2015A2016A2017A2018A2019A2020A2021A2022A2023A2024A2025E 2026E 2027E 2028E 2029E
 BSE : 540376 | NSE : ITC

Regression Beta - 2 Years Weekly

ITC LTD Weekly Returns NIFTY Returns Beta Drifting

Date Closing price Return Closing Price Return Levered Raw Beta -0.61
12-12-2022 314.65 18,269.00 Raw Beta Weight 75.00%
19-12-2022 306.77 -2.50% 17,806.80 2.60%
26-12-2022 311.32 1.48% 18,105.30 -1.65% Market Beta 1.00
02-01-2023 314.61 1.06% 17,859.45 1.38% Market Beta Weight 25.00%
09-01-2023 308.69 -1.88% 17,956.60 -0.54%
16-01-2023 314.19 1.78% 18,027.65 -0.39% Adjusted Beta -0.20
23-01-2023 324.89 3.41% 17,604.35 2.40%
30-01-2023 357.43 10.02% 17,854.05 -1.40%
06-02-2023 348.69 -2.45% 17,856.50 -0.01%
13-02-2023 360.01 3.25% 17,944.20 -0.49%
20-02-2023 367.31 2.03% 17,465.80 2.74%
27-02-2023 367.16 -0.04% 17,594.35 -0.73%
06-03-2023 370.07 0.79% 17,412.90 1.04%
13-03-2023 358.2 -3.21% 17,100.05 1.83%
20-03-2023 361.2 0.84% 16,945.05 0.91%
27-03-2023 365.78 1.27% 17,359.75 -2.39%
03-04-2023 369.45 1.00% 17,599.15 -1.36%
10-04-2023 377.32 2.13% 17,828.00 -1.28%
17-04-2023 389.39 3.20% 17,624.05 1.16%
24-04-2023 405.89 4.24% 18,065.00 -2.44%
01-05-2023 408.94 0.75% 18,069.00 -0.02%
08-05-2023 401.02 -1.94% 18,314.80 -1.34%
15-05-2023 400.45 -0.14% 18,203.40 0.61%
22-05-2023 423.1 5.66% 18,499.35 -1.60%
29-05-2023 422.91 -0.04% 18,534.10 -0.19%
05-06-2023 424.57 0.39% 18,563.40 -0.16%
12-06-2023 438.76 3.34% 18,826.00 -1.39%
19-06-2023 430.67 -1.84% 18,665.50 0.86%
26-06-2023 437.31 1.54% 19,189.05 -2.73%
03-07-2023 453.58 3.72% 19,331.80 -0.74%
10-07-2023 457.93 0.96% 19,564.50 -1.19%
17-07-2023 474.93 3.71% 19,745.00 -0.91%
24-07-2023 453.62 -4.49% 19,646.05 0.50%
31-07-2023 440.55 -2.88% 19,517.00 0.66%
07-08-2023 434.55 -1.36% 19,428.30 0.46%
14-08-2023 427.67 -1.58% 19,310.15 0.61%
21-08-2023 429.32 0.39% 19,265.80 0.23%
28-08-2023 427.09 -0.52% 19,435.30 -0.87%
04-09-2023 428.64 0.36% 19,819.95 -1.94%
11-09-2023 434.16 1.29% 20,192.35 -1.84%
18-09-2023 429.08 -1.17% 19,674.25 2.63%
25-09-2023 430.33 0.29% 19,638.30 0.18%
02-10-2023 428.16 -0.50% 19,653.50 -0.08%
09-10-2023 434.16 1.40% 19,751.05 -0.49%
16-10-2023 424.43 -2.24% 19,542.65 1.07%
23-10-2023 420.02 -1.04% 19,047.25 2.60%
30-10-2023 419.54 -0.11% 19,230.60 -0.95%
06-11-2023 422.73 0.76% 19,425.35 -1.00%
 BSE : 540376 | NSE : ITC

Calculation of ROIC Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Current Assets
Inventories 8,879.0 10,397.0 10,864.0 11,771.0 14,153.0
Trade receivables 2,562.0 2,502.0 2,462.0 2,956.0 4,026.0
Cash Equivalents 7,277.0 4,659.0 4,654.0 4,880.0 7,218.0
Loans n Advances 6.0 7.0 11.0 13.0 31.0
Other asset items 4,952.0 4,015.0 6,906.0 7,941.0 4,531.0
Total Current Assets 23,676.0 21,580.0 24,897.0 27,561.0 29,959.0

Current Liabilities
Trade Payables 3,630.0 4,319.0 4,417.0 4,659.0 4,798.0
Advance from Customers 703.0 811.0 1,278.0 1,295.0 886.0
Other liability items 7,050.0 7,666.0 8,429.0 10,032.0 10,877.0
Total Current Liabilities 77,311.0 73,761.0 77,196.0 85,831.0 91,754.0

# Net Working Capital (53,635.0) (52,181.0) (52,299.0) (58,270.0) (61,795.0)

Non Current Assets

Land 2,797.0 2,889.0 2,829.0 2,830.0 2,865.0
Building 8,161.0 8,387.0 9,100.0 9,789.0 10,944.0
Plant Machinery 14,625.0 15,307.0 16,912.0 18,480.0 20,718.0
Equipments 40.0 41.0 44.0 44.0 53.0
Furniture n fittings 810.0 833.0 907.0 1,000.0 1,068.0
Railway sidings 2.0 2.0 2.0 2.0 2.0
Vehicles 184.0 180.0 179.0 189.0 192.0
Intangible Assets 684.0 2,734.0 2,744.0 3,490.0 3,505.0
Other fixed assets 663.0 716.0 719.0 786.0 841.0
Gross Block 27,966.0 31,089.0 33,436.0 36,610.0 40,188.0
Accumulated Depreciation 6,252.0 7,790.0 9,204.0 10,757.0 12,368.0
# Net Non Current Assets 34,218.0 38,879.0 42,640.0 47,367.0 52,556.0

# Invested Capital (19,417.0) (13,302.0) (9,659.0) (10,903.0) (9,239.0)

EBIT 17,675.2 15,421.2 18,908.5 23,897.5 24,383.4

# ROIC -91.03% -115.93% -195.76% -219.18% -263.92%

# Calculation of Reinvestment Rate Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Net Capex 2,414.0 1,834.0 2,009.0 2,694.0 3,456.0

Change in Working Capital 1,454.0 (118.0) (5,971.0) (3,525.0)

EBIT 17,675.2 15,421.2 18,908.5 23,897.5 24,383.4

Marginal Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00%
EBIT(1-T) 13,256.4 11,565.9 14,181.4 17,923.2 18,287.6

Reinvestment 3,288.0 1,891.0 (3,277.0) (69.0)

Reinvestment Rate 28.43% 13.33% -18.28% -0.38%

4 Year Average 5.78%

4 Year Median 6.48%

# Calculation of Growth Rate Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Reinvestment Rate 28.43% 13.33% -18.28% -0.38%

ROIC -115.93% -195.76% -219.18% -263.92%
Intrinsic Growth -32.96% -26.10% 40.07% 1.00%

4 Year Average -4.50%

4 Year Median -12.55%
 BSE : 540376 | NSE : ITC

Weighted Average Cost of Capital

All figures in INR unless stated otherwise

Peer Comps
Debt/ Debt/ Levered Unlevered
1 2
Name Country Total debt Total Equity Tax rate Equity Capital Beta Beta3

ITC India 304.3 5,76,247.4 30.00% 0.05% 0.05% -0.61 -0.61

Hind. Unilever India 1,651.0 5,50,875.5 30.00% 0.30% 0.30% 0.15 0.15
Varun Beverages India 6,760.9 2,18,816.9 30.00% 3.09% 3.00% 0.14 0.14
Nestle India India 369.8 2,14,471.8 30.00% 0.17% 0.17% 0.44 0.44
Britannia Inds. India 2,753.6 1,16,307.7 30.00% 2.37% 2.31% 0.56 0.55
Godrej Consumer India 3,828.5 1,13,553.0 30.00% 3.37% 3.26% 0.48 0.47
United Spirits India 518.0 1,10,928.5 30.00% 0.47% 0.46% 0.55 0.55
Tata Consumer India 2,954.7 91,222.0 30.00% 3.24% 3.14% 0.00 0.00
Dabur India India 1,751.6 89,793.6 30.00% 1.95% 1.91% 0.31 0.31
Marico India 498.0 82,096.3 30.00% 0.61% 0.60% 0.31 0.31

Average 30.00% 0.90% 0.88% 0.15 0.14

Median 30.00% 0.24% 0.24% 0.15 0.14

Cost of debt Cost of equity

Pre tax Cost of Debt 26% Risk free rate 7.39%

Tax rate 30% Equity Risk Premium 9.47%
After tax cost of debt 18% Levered Beta 4 0.1
Cost of equity 8.75%

Capital Strucutre Levered Beta

Current Target Comps Median Unlevered Beta 0.14

Total debt 304.3 0.05% 0.24% Target Equity/Debt 0.24%
Market Captilization 5,76,247.4 99.95% 99.765% Taxe rate 30%
Total Capitalization 5,76,551.8 100% 100% Levered Beta 0.1

Debt/Equity 0.05% 0.24% Weighted Average Cost of Capital

1. Tax Rate considered as Marginal Tax Rate for the country Cost of Equity 8.75%
2. Levered Beta is based on 5 year monthly data Equity Weight 99.765%
3. Unlevered Beta = Levered Beta/(1+(1-Tax Rate) x Debt/Equity)
3. Levered Beta = Unlevered Beta*(1+(1-Tax Rate) x Debt/Equity) Cost of Debt 18%
Debt Weight 0.24%

WACC 8.77%
 BSE : 540376 | NSE : ITC

DCF Valuation
0 0.5 1.5 2.5 3.5 4.5
Calculation of PV of FCFF Mar-24A Mar-25F Mar-26F Mar-27F Feb-28F Feb-29F

EBIT 26,927.36 25,716.27 24,559.64 23,455.04 22,400.12 21,392.64

Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%

EBIT (1-T) 20,195.52 19,287.20 18,419.73 17,591.28 16,800.09 16,044.48

Less: Reinvestment Rate 5.78% 5.78% 5.78% 5.78% 5.78% 5.78%

Free Cash Flow to Firm 19,029.14 18,173.28 17,355.91 16,575.30 15,829.81 15,117.84

Discounting Factor 1.00 0.96 0.88 0.81 0.75 0.68

PV of FCFF 19,029.14 17,425.03 15,299.20 13,432.71 11,793.93 10,355.08

Expected Growth -4.50% #Sector growth rate / intrinsic growth rate

Terminal Growth 5.38% #GDP

Calculation of Terminal Value Sensitivity Analysis

293.20 7.00% 8.77% 9.00% 10.00%
FCFF (n+1) 14,437.89 3.00% 275.0 197.2 190.4 166.2
WACC 8.77% 4.00% 346.0 225.9 216.5 184.1
Terminal Growth Rate 5.38% 5.38%
6.00% 587.7
913.5 293.4
345.6 276.3
321.0 221.5
246.7
Terminal Value 425581.4333 6.00% 913.5 345.6 321.0 246.7

Calculation of Enterprise Value

PV of FCFF 68,305.95
PV of Terminal Value 2,91,505.32
Value of Operating Asset 3,59,811.27

Add: Cash 7,217.68

Less: Debt 303.43
Value of Equity 3,66,725.52
No. of Shares 1,250.76
Value per Share 293.20

Share price 480

Discount/premium 64%
Times 1.64x
 BSE : 540376 | NSE : ITC

Amount in crores
Comparable Company Valuation
Market Data Financials Valuation
Share Shares Enterprise
Company Ticker Price Outstanding Equity Value Net Debt Value Revenue EBITDA Net Income EV/Revenue EV/EBITDA P/E
1 ITC 460.60 1251.08 576247.45 304.34 576614.27 75135.27 29600.32 75135.27 7.67 19.48 28.05
2 Hind. Unilever 2344.55 234.96 550875.47 1651.00 551917.18 62410.00 15900.81 62410.00 8.84 34.71 53.54
3 Varun Beverages 647.10 338.15 218816.87 6760.92 225660.75 18986.54 4643.23 18986.54 11.89 48.60 86.13
4 Nestle India 2224.35 96.42 214471.83 369.84 214655.24 19785.96 4832.40 19785.96 10.85 44.42 67.47
5 Britannia Inds. 4828.05 24.09 116307.72 2753.56 119022.20 17243.55 3352.74 17243.55 6.90 35.50 54.11
6 Godrej Consumer 1110.00 102.30 113553.00 3828.47 117392.34 14043.16 3385.99 14043.16 8.36 34.67 62.81
7 United Spirits 1525.00 72.74 110928.50 518.00 111023.74 11390.10 2312.03 11390.10 9.75 48.02 76.86
8 Tata Consumer 921.90 98.95 91222.01 2954.65 94216.77 16297.38 2739.66 16297.38 5.78 34.39 66.78
9 Dabur India 506.65 177.23 89793.58 1751.62 91448.91 12447.40 2900.38 12447.40 7.35 31.53 50.98
10 Marico 633.85 129.52 82096.25 498.00 82613.32 10007.00 2299.93 10007.00 8.26 35.92 51.71
High 11.9x 48.6x 86.1x
75th Percentile 9.5x 42.3x 67.3x
Average 8.6x 36.7x 59.8x
Median 8.3x 35.1x 58.5x
25th Percentile 7.4x 34.5x 52.2x
Low 5.8x 19.5x 28.1x

ITC Comparable Valuation EV/Revenue EV/EBITDA P/E

Implied Enterprise Value 6,24,184 10,39,119 43,92,712
Net Debt 304 304 304
Implied Market Value 6,23,880 10,38,815 43,92,408
Shares Outstanding 1251.08 1251.08 1251.08
Implied Value per Share 498.7 830.3 3,510.9
Source: The Valuation School, Screener.in
Undervalued Undervalued Undervalued
 BSE : 540376 | NSE : ITC

Football Field Analysis - Data

OpenLow Low OpenHigh High
Football Field Analysis - Valuation Summary (Rs) Comps 498.7 498.7 3510.9 3510.9
4,000.00
₹ 3,510.90
DCF Bear 166.2 166.2 246.7 246.7
3,500.00 DCF Base 229.2 229.2 270.4 270.4
DCF Bull 275.0 275.0 913.5 913.5
3,000.00
52W H/L 399.3 399.3 528.55 528.55
2,500.00

2,000.00

1,500.00
₹ 913.54
1,000.00
₹ 528.55
500.00 ₹ 246.72 ₹ 270.40
₹ 498.70 ₹ 399.30
0.00 ₹ 229.20 ₹ 275.04
₹ 166.18
Comps DCF Bear DCF Base DCF Bull 52W H/L
 BSE : 540376 | NSE : ITC

# Date Price Vol. Returns Sorted returns Replication Simulated Returns Calculation of Value at Risk - ITC
12-01-2024 470 147.01M -1.42% -1.42% 1 5.23%
11-01-2024 476.75 181.11M -2.47% -2.47% 2 7.69% Historical Approach
10-01-2024 488.8 270.51M -5.66% -5.66% 3 -11.37% Mean 1.48%
09-01-2024 518.15 255.20M 3.24% 3.24% 4 12.41% Std Deviation 7.99%
08-01-2024 501.9 249.43M 1.32% 1.32% 5 -6.71% Min -23.25%
07-01-2024 495.35 414.81M 16.58% 16.58% 6 7.50% Max 30.63%
06-01-2024 424.9 351.60M -0.36% -0.36% 7 4.26% CMP 470.0
05-01-2024 426.45 332.12M -2.11% -2.11% 8 1.50%
04-01-2024 435.65 262.00M 1.70% 1.70% 9 -3.25% Percentile Confidence VAR% Stock Price VAR(INR)
03-01-2024 428.35 487.27M 5.43% 5.43% 10 9.55% 5.00% 95.00% -12.0% 526.24 -56.2
02-01-2024 406.3 376.52M -7.98% -7.98% 11 -7.75% 1.00% 99.00% -18.5% 557.12 -87.1
01-01-2024 441.55 286.08M -4.45% -4.45% 12 -7.39% 0.50% 99.50% -19.0% 559.12 -89.1
12-01-2023 462.1 254.72M 6.03% 6.03% 13 12.23% 10% 90.00% -7.6% 505.95 -36.0
11-01-2023 435.8 157.16M 1.73% 1.73% 14 6.95%
10-01-2023 428.4 183.88M -3.60% -3.60% 15 -1.87%
09-01-2023 444.4 205.72M 1.07% 1.07% 16 -3.50%
08-01-2023 439.7 229.26M -5.58% -5.58% 17 0.38%
07-01-2023 465.7 284.13M 3.12% 3.12% 18 -3.39%
06-01-2023 451.6 164.98M 1.37% 1.37% 19 3.19%
05-01-2023 445.5 288.31M 5.33% 5.33% 20 7.07%
04-01-2023 422.94 171.37M 10.96% 10.96% 21 5.95%
03-01-2023 381.15 236.51M 1.81% 1.81% 22 10.20%
02-01-2023 374.39 371.51M 6.91% 6.91% 23 14.70%
01-01-2023 350.19 218.46M 6.27% 6.27% 24 3.06%
12-01-2022 329.52 191.18M -2.49% -2.49% 25 -2.28%
11-01-2022 337.92 256.22M -2.50% -2.50% 26 0.16%
10-01-2022 346.57 250.51M 4.97% 4.97% 27 0.35%
09-01-2022 330.17 313.63M 3.65% 3.65% 28 10.04%
08-01-2022 318.54 245.94M 5.76% 5.76% 29 -6.90% Monte Carlo Simulation
07-01-2022 301.19 316.76M 10.80% 10.80% 30 17.94% Mean 1.43%
06-01-2022 271.83 263.36M 1.06% 1.06% 31 3.75% Std Deviation 7.97%
05-01-2022 268.99 462.38M 4.28% 4.28% 32 -2.37% Min -33.79%
04-01-2022 257.96 443.04M 3.55% 3.55% 33 2.33% Max 32.56%
03-01-2022 249.12 699.29M 16.12% 16.12% 34 -2.19% CMP 1852.0
02-01-2022 214.53 466.27M -1.97% -1.97% 35 -14.51%
01-01-2022 218.85 266.19M 0.99% 0.99% 36 -11.83%
12-01-2021 216.71 457.40M -1.41% -1.41% 37 8.59% Percentile Confidence VAR % Stock Price VAR (INR)
11-01-2021 219.8 394.69M -0.92% -0.92% 38 3.18% 5.0% 95.0% -11.43% 523.7 -53.7
10-01-2021 221.83 624.79M -5.48% -5.48% 39 -2.96% 1.0% 99.0% -17.40% 551.8 -81.8
09-01-2021 234.7 706.56M 11.76% 11.76% 40 5.39% 0.5% 99.5% -19.22% 560.3 -90.3
08-01-2021 210.01 355.80M 3.10% 3.10% 41 0.66% 10% 90.0% -8.75% 511.1 -41.1
07-01-2021 203.7 417.08M 1.11% 1.11% 42 -3.52%
06-01-2021 201.46 569.50M -6.42% -6.42% 43 9.35%
05-01-2021 215.27 549.12M 6.91% 6.91% 44 -4.16%
04-01-2021 201.36 370.96M -7.28% -7.28% 45 4.54%
03-01-2021 217.16 841.77M 7.19% 7.19% 46 13.82%
02-01-2021 202.6 998.53M 0.29% 0.29% 47 -1.07%
01-01-2021 202.01 771.14M -2.75% -2.75% 48 20.36%
12-01-2020 207.72 650.96M 7.93% 7.93% 49 -3.40%
11-01-2020 192.46 663.13M 17.18% 17.18% 50 11.25%
10-01-2020 164.24 527.59M -3.76% -3.76% 51 3.39%
09-01-2020 170.65 646.32M -10.15% -10.15% 52 -9.54%
08-01-2020 189.93 567.65M -1.57% -1.57% 53 0.11%
07-01-2020 192.96 604.24M -0.26% -0.26% 54 -7.90%
06-01-2020 193.46 764.24M -1.37% -1.37% 55 10.10%
05-01-2020 196.14 554.41M 8.41% 8.41% 56 3.23%
04-01-2020 180.93 535.73M 6.02% 6.02% 57 18.02%
03-01-2020 170.65 885.52M -13.08% -13.08% 58 -1.31%
02-01-2020 196.34 456.63M -15.99% -15.99% 59 -9.60%
01-01-2020 233.71 219.66M -1.07% -1.07% 60 -3.88%
12-01-2019 236.24 244.94M -3.53% -3.53% 61 6.76%
11-01-2019 244.89 226.19M -4.37% -4.37% 62 -2.41%
10-01-2019 256.07 351.77M -0.85% -0.85% 63 0.65%
09-01-2019 258.26 329.44M 5.78% 5.78% 64 21.21%
08-01-2019 244.15 234.08M -9.09% -9.09% 65 -8.12%
07-01-2019 268.55 259.92M -1.33% -1.33% 66 8.53%
06-01-2019 272.17 214.77M -1.69% -1.69% 67 9.59%
05-01-2019 276.84 291.59M -7.57% -7.57% 68 -17.84%
04-01-2019 299.51 185.14M 1.38% 1.38% 69 -1.35%
03-01-2019 295.43 246.36M 7.68% 7.68% 70 5.36%
02-01-2019 274.36 327.89M -0.93% -0.93% 71 -1.17%
01-01-2019 276.94 263.25M -1.06% -1.06% 72 6.39%
12-01-2018 279.92 188.64M -1.45% -1.45% 73 19.13%
11-01-2018 284.05 183.52M 2.03% 2.03% 74 -7.19%
10-01-2018 278.39 252.72M -5.93% -5.93% 75 1.61%
09-01-2018 295.93 233.95M -6.91% -6.91% 76 14.32%
08-01-2018 317.89 263.51M 7.44% 7.44% 77 22.45%
 ITC LTD
(NSE : ITC | BSE : 540376)
INR 488.2
52 Week (High - INR 4609 & Low - 3292)

About the company

ITC Limited is an Indian conglomerate company, headquartered in Kolkata. It has a presence across six business segments,
namely FMCG, hotels, agribusiness, information technology, paper products, and packaging. It generates a plurality of its revenue
from tobacco products. In terms of market capitalization, ITC is the second-largest FMCG company in India and the third-largest
tobacco company in the world. It employs 36,500 people at more than 60 locations across India. Its products are available in 6
million retail outlets in India and exported to 90 countries.

Financial Summary

Revenues (INR Crs.) Net Profit (INR Crs.) Average Total Assets (INR Crs.)
88,792
70,919 70,866
20,459
60,645 19,192
81,513
49,257 15,243
13,161
75,536 75,478

2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024

Return on Equity (%) Return on Asset (%) Financial Leverage

23.54% 23.04%
20.19% 1.24x 1.24x
29.16% 28.48% 17.42% 1.23x
24.82%
20.95%

1.20x

2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024

Recent Updates
Demerger of ITC Hotels: ITC has approved the demerger of its hotel business. Post-demerger, ITC Hotels will be a
separate entity listed on the NSE and BSE, with ITC retaining a 40% stake while the remaining 60% will be distributed
among shareholders. The demerger is expected to enhance value and op mize capital alloca on.
FMCG Expansion: ITC plans to invest ₹20,000 crore in its FMCG business over the next five years, focusing on product
innovation and premiumization. Recent launches include health-oriented products under brands like Aashirvaad and
Sunfeast.
Hotel and Hospitality Growth: ITC recently reopened Welcomhotel Chennai after a comprehensive renovation and
launched ITC Ratnadipa in Colombo, Sri Lanka. It has also added 22 hotels in the last two years and plans to open 25
more by 2025.
Sustainability Initiatives: ITC continues to grow its portfolio of sustainable products, including the establishment of
facili es for molded fiber products and nico ne deriva ves, which aim to boost both domes c and export revenue.
Financial Performance: ITC reported stable growth in FMCG and hotel segments, despite challenges in the paper and
cigarette sectors. Its Q3 FY2024 gross revenue grew to ₹17,483 crore, reflecting diversification and efficiency
improvements

Page 1
Dupont Analysis - Return on Equity & Return on Asset
Return on Equity (ROE)
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 11,271.2 12,592.3 15,306.2 13,161.2 15,242.7 19,191.7 20,458.8
Average Shareholder Equity 49,461.5 55,825.5 62,207.1 62,810.3 61,401.5 65,805.4 71,831.1
Return on Equity 22.79% 22.56% 24.61% 20.95% 24.82% 29.16% 28.48%

ROE - Dupont Equation

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 11,271.2 12,592.3 15,306.2 13,161.2 15,242.7 19,191.7 20,458.8
Revenue 43,448.9 48,339.6 49,387.7 49,257.5 60,644.5 70,919.0 70,866.2
Net Profit Margin (A) 25.94% 26.05% 30.99% 26.72% 25.13% 27.06% 28.87%

Revenue 43,448.9 48,339.6 49,387.7 49,257.5 60,644.5 70,919.0 70,866.2

Average Total Asset 60,069.6 67,990.0 74,524.9 75,535.8 75,478.4 81,513.5 88,792.5
Asset Turnover Ratio (B) 0.7x 0.7x 0.7x 0.7x 0.8x 0.9x 0.8x

Average Total Asset 60,069.6 67,990.0 74,524.9 75,535.8 75,478.4 81,513.5 88,792.5
Average Shareholder Equity 49,461.5 55,825.5 62,207.1 62,810.3 61,401.5 65,805.4 71,831.1
Equity Multiplier (C) 1.21x 1.22x 1.20x 1.20x 1.23x 1.24x 1.24x

Return on Equity (A*B*C) 22.79% 22.56% 24.61% 20.95% 24.82% 29.16% 28.48%

Return on Asset
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 11,271.2 12,592.3 15,306.2 13,161.2 15,242.7 19,191.7 20,458.8
Average Total Asset 60,069.6 67,990.0 74,524.9 75,535.8 75,478.4 81,513.5 88,792.5
Return on Asset 18.76% 18.52% 20.54% 17.42% 20.19% 23.54% 23.04%

ROA - Dupont Equation

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 11,271.2 12,592.3 15,306.2 13,161.2 15,242.7 19,191.7 20,458.8
Revenue 43,448.9 48,339.6 49,387.7 49,257.5 60,644.5 70,919.0 70,866.2
Net Profit Margin (A) 25.94% 26.05% 30.99% 26.72% 25.13% 27.06% 28.87%

Revenue 43,448.9 48,339.6 49,387.7 49,257.5 60,644.5 70,919.0 70,866.2

Average Total Asset 60,069.6 67,990.0 74,524.9 75,535.8 75,478.4 81,513.5 88,792.5
Asset Turnover Ratio (B) 0.7x 0.7x 0.7x 0.7x 0.8x 0.9x 0.8x

Return on Asset (A*B) 18.76% 18.52% 20.54% 17.42% 20.19% 23.54% 23.04%

Dupont Summary
1. ITC's Net Profit Margin has shown fluctuations over the years, peaking at 30.99% in FY20 but declining afterward to
25.13% in FY22. It improved again to 28.87% in FY24, reflecting operational efficiency and cost management in recent
years.
2. The Asset Turnover Ratio has remained relatively stable, hovering around 0.7x in most years. It increased slightly to
0.8x-0.9x in FY22 and FY23, indicating better utilization of assets to generate revenue but dropped back to 0.8x in FY24,
possibly due to a larger asset base.
3. Combining the above factors, ITC's ROA has improved over time, with notable increases in recent years. It rose from
17.42% in FY21 to 23.54% in FY23, showing stronger financial performance. In FY24, the ROA slightly reduced to 23.04%,
but it still reflects solid profitability relative to asset usage.

Disclaimer : This report is made as part of educational assignment and is meant for educational purpose only. The author of the report is not liable for any
losses due to actions taken basis this report. It is advisable to consult SEBI registered reasearch analyst before making any investments

Page 2
 ITC LTD
(NSE : ITC | BSE : 540376)
INR 488.2
52 Week (High - INR 4609 & Low - 3292)

Altman's Z Score Analysis

ITC Limited is an Indian conglomerate company, headquartered in Kolkata. It has a presence across six business segments, namely FMCG,
hotels, agribusiness, information technology, paper products, and packaging. It generates a plurality of its revenue from tobacco products.
In terms of market capitalization, ITC is the second-largest FMCG company in India and the third-largest tobacco company in the world. It
employs 36,500 people at more than 60 locations across India. Its products are available in 6 million retail outlets in India and exported to
90 countries.

Financial Summary

Working capital/Total Assets Retained Earnings/Total Assets EBIT/ Total Assets

13.48%
14.19% 27.84% 26.61%
13.04% 0.85% 24.47%
11.44%
20.90%

0.00% 0.00% 0.00%

2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024

Market cap/ Long term liabilities Return on Asset (%) Altman Z Score

16477.14%
78.56% 82.63%
14684.94%
77.24% 73.9 77.4
66.78%

8286.55%
9516.96% 45.8
34.0

2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024

Recent Updates
Demerger of ITC Hotels: ITC has approved the demerger of its hotel business. Post-demerger, ITC Hotels will be a separate
entity listed on the NSE and BSE, with ITC retaining a 40% stake while the remaining 60% will be distributed among
shareholders. The demerger is expected to enhance value and op mize capital alloca on.
FMCG Expansion: ITC plans to invest ₹20,000 crore in its FMCG business over the next five years, focusing on product
innovation and premiumization. Recent launches include health-oriented products under brands like Aashirvaad and
Sunfeast.
Hotel and Hospitality Growth: ITC recently reopened Welcomhotel Chennai after a comprehensive renovation and
launched ITC Ratnadipa in Colombo, Sri Lanka. It has also added 22 hotels in the last two years and plans to open 25 more
by 2025.
Sustainability Initiatives: ITC continues to grow its portfolio of sustainable products, including the establishment of facilities
for molded fiber products and nico ne deriva ves, which aim to boost both domes c and export revenue.
Financial Performance: ITC reported stable growth in FMCG and hotel segments, despite challenges in the paper and
cigare e sectors. Its Q3 FY2024 gross revenue grew to ₹17,483 crore, reflec ng diversifica on and efficiency improvements

Page 1
Altman's Z Score Analysis Calculation
Working Capital / Total Assets
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Working Capital 8,460.9 10,600.2 11,917.6 8,437.5 10,406.9 11,191.7 13,015.4
Total Assets 64,240.9 71,739.0 77,310.8 73,760.8 77,196.0 85,831.0 91,754.0
Working Capital / Total Assets (A) 13.17% 14.78% 15.42% 11.44% 13.48% 13.04% 14.19%

Retained Earnings / Total Assets

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Retained Earnings 2,967.7 3,706.8 698.9 0.0 0.0 0.0 781.1
Total Assets 64,240.9 71,739.0 77,310.8 73,760.8 77,196.0 85,831.0 91,754.0
Retained Earnings / Total Assets (B) 4.62% 5.17% 0.90% 0.00% 0.00% 0.00% 0.85%

EBIT / Total Assets

EBIT 15,284.3 17,140.8 17,698.6 15,419.2 18,890.7 23,895.3 24,416.2
Total Assets 64,240.9 71,739.0 77,310.8 73,760.8 77,196.0 85,831.0 91,754.0
EBIT/Total Assets (C) 23.79% 23.89% 22.89% 20.90% 24.47% 27.84% 26.61%

Market Cap / Long term Liabilities

Market Cap 3,11,819.7 3,64,387.8 2,11,057.6 2,68,948.2 3,08,882.4 4,76,614.5 5,34,782.1
Long term Liabilities 3,245.6 3,245.6 3,245.6 3,245.6 3,245.6 3,245.6 3,245.6
Market Cap / Long term Liabilities (D) 9607.46% 11227.13% 6502.88% 8286.55% 9516.96% 14684.94% 16477.14%

Sales / Total Assets

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Total Sales 43,448.9 48,339.6 49,387.7 49,257.5 60,644.5 70,919.0 70,866.2
Total Assets 64,240.9 71,739.0 77,310.8 73,760.8 77,196.0 85,831.0 91,754.0
Return on Asset (E) 67.63% 67.38% 63.88% 66.78% 78.56% 82.63% 77.24%

Altman's Z Score
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Final Score 40.0 46.4 25.9 34.0 45.8 73.9 77.4
Financial Stability Strong Strong Strong Strong Strong Strong Strong
Disclaimer : This report is made as part of educational assignment and is meant for educational purpose only. The author of the report is not liable for any losses due to
actions taken basis this report. It is advisable to consult SEBI registered reasearch analyst before making any investments

Page 2