ITC Limited (ITC) AI Stock Analysis

• Market Cap: ₹5.21T
• Dividend Yield: 3.52%
• Average Volume (3M): 571.69K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.46
• Revenue Growth: 10.55%
• EPS Growth: 70.20%
• Country: IN
• Employees: 37,312
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Tobacco
• EPS (TTM): 3.90
• Shares Outstanding: 12,526,663,000
• 10 Day Avg. Volume: 663,062
• 30 Day Avg. Volume: 571,686
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹492.17
• Price Target Upside: 20.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 77 Outperform
• Price Target: ₹463.00 ▲(13.62% Upside)

ITC Limited's strong financial performance is the most significant factor driving its overall score, supported by robust profitability, revenue growth, and financial stability. The valuation is fair with an attractive dividend yield, contributing positively. However, technical indicators suggest a neutral to slightly bearish trend, slightly tempering the overall score.

ITC Limited Business Overview & Revenue Model

Company Description

ITC Limited is an Indian conglomerate with diversified presence across various sectors including Fast-Moving Consumer Goods (FMCG), Hotels, Paperboards and Packaging, Agri-Business, and Information Technology. Known for its wide range of products, ITC's core offerings include cigarettes, packaged foods, personal care products, education and stationery products, and branded apparel under well-recognized brands. The company is headquartered in Kolkata, India, and is one of the country's foremost private sector companies with a market capitalization exceeding USD 50 billion.

How the Company Makes Money

ITC Limited generates revenue through its diversified business portfolio. The company's largest revenue stream is its FMCG sector, particularly from the sale of cigarettes, which has been a traditional stronghold. In addition to tobacco products, ITC has expanded its FMCG business to include packaged foods, personal care, and other consumer goods. The hotels segment contributes to revenue through hospitality services, benefiting from ITC's owned and managed luxury hotels across India. The Paperboards and Packaging division earns through the sale of paperboards, specialty papers, and packaging products. ITC's Agri-Business segment generates income by sourcing and exporting agricultural commodities. Lastly, the Information Technology division provides IT services and solutions, primarily through its subsidiary, ITC Infotech. The company's earnings are bolstered by its strong brand equity, extensive distribution network, and strategic partnerships across sectors.

ITC Limited Financial Statement Overview

Summary

ITC Limited exhibits strong financial health with excellent profitability, robust revenue growth, and a stable balance sheet. The company demonstrates effective cost management, low leverage, and strong cash flow generation. These factors position ITC well for sustainable growth and financial stability in the competitive Tobacco industry.

Income Statement

ITC Limited shows robust financial performance with strong gross and net profit margins. The gross profit margin is consistently high, indicating effective cost management, with the latest figure at approximately 57.6%. The net profit margin has significantly improved from 21.7% in 2024 to 46.1% in 2025, driven by substantial net income growth. Revenue growth is also notable, with a 7.1% increase from 2024 to 2025, demonstrating a positive trajectory in sales.

Balance Sheet

The balance sheet reflects strong equity with a high equity ratio of 79.5% in 2025, showing financial stability and low leverage. The debt-to-equity ratio remains very low at 0.004, indicating minimal reliance on debt financing. Return on equity has improved to 49.6%, underscoring efficient utilization of shareholders' equity to generate profits.

Cash Flow

ITC Limited has a solid cash flow position with a strong free cash flow to net income ratio, which is above 44.2% for 2025, indicating effective cash generation. The operating cash flow to net income ratio is around 50.7% in 2025, reflecting adequate operational cash flow to support net income. Free cash flow has grown by 12.7% from 2024 to 2025, highlighting an improving liquidity position.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	765.39B	753.23B	703.15B	702.45B	600.81B	489.53B
Gross Profit	400.85B	433.45B	421.30B	412.39B	333.35B	285.48B
EBITDA	283.83B	262.82B	289.97B	277.40B	225.03B	196.36B
Net Income	347.47B	347.47B	204.59B	191.92B	152.43B	131.61B
Balance Sheet
Total Assets	880.91B	880.91B	918.26B	858.83B	772.60B	738.19B
Cash, Cash Equivalents and Short-Term Investments	203.00B	203.00B	198.93B	232.32B	166.94B	192.96B
Total Debt	2.85B	2.85B	3.03B	3.06B	2.50B	2.71B
Total Liabilities	176.93B	176.93B	169.36B	163.44B	144.38B	131.25B
Stockholders Equity	700.30B	700.30B	745.07B	691.55B	624.56B	603.47B
Cash Flow
Free Cash Flow	0.00	153.48B	136.16B	161.35B	136.34B	106.90B
Operating Cash Flow	0.00	176.27B	171.79B	188.78B	157.76B	125.27B
Investing Cash Flow	0.00	-3.96B	15.63B	-57.32B	-22.38B	56.83B
Financing Cash Flow	0.00	-170.37B	-185.51B	-130.06B	-135.81B	-186.34B

ITC Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 407.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ITC, the sentiment is Negative. The current price of 407.5 is below the 20-day moving average (MA) of 408.60, below the 50-day MA of 412.97, and below the 200-day MA of 417.09, indicating a bearish trend. The MACD of -1.24 indicates Negative momentum. The RSI at 47.68 is Neutral, neither overbought nor oversold. The STOCH value of 64.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ITC.

ITC Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITC	77 Outperform	₹5.21T	14.91		3.52%	10.55%	70.20%
GODFRYPHLP	70 Outperform	₹544.20B	44.19		29.42%	32.82%	39.97%
Sector *	63 Neutral	$20.50B	14.76	-2.72%	3.09%	1.90%	-4.74%
HERITGFOOD	62 Neutral	₹44.48B	26.10		0.53%	8.60%	14.95%
HATSUN	62 Neutral	₹205.84B	72.62		0.66%	8.52%	-10.77%
UBL	58 Neutral	₹485.71B	107.46		0.55%	11.79%	1.04%
VSTIND	―	₹46.45B	15.86		3.72%	―	―