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ITC Limited (IN:ITC)
:ITC
India Market
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ITC Limited (ITC) AI Stock Analysis

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IN:ITC

ITC Limited

(ITC)

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Outperform 81 (OpenAI - 4o)
Rating:81Outperform
Price Target:
₹474.00
▲(17.02% Upside)
ITC Limited's strong financial performance is the most significant factor driving the stock score, supported by robust profitability, revenue growth, and a stable balance sheet. The valuation is also favorable, with a reasonable P/E ratio and attractive dividend yield. Technical analysis indicates stable price action, contributing to a solid overall stock score.

ITC Limited (ITC) vs. iShares MSCI India ETF (INDA)

ITC Limited Business Overview & Revenue Model

Company DescriptionITC Limited engages in the fast-moving consumer goods, hotels, paperboards and paper, packaging, agri, and information technology (IT) 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; apparel, safety matches; and incense sticks under various brands. The company also operates approximately 113 hotels under the ITC Hotel, WelcomHotel, Fortune, and WelcomHeritage brands; and Kaya Kalp spas. In addition, it offers virgin, recycled, barrier coated, biodegradable barrier, and graphic boards, as well as specialty papers; and packaging products, such as carton board, flexible, tobacco, and green packaging products; and exports feed ingredients, food grains, marine products, processed fruits, coffee products, leaf tobacco products, and spices. Further, the company 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 services; project management consultancy services; business consulting, real estate development, and agro-forestry and other related services; manages and operates golf courses; fabricates and assembles machinery for tube filling; cartooning and wrapping services; conveyor solutions; and produces and commercializes seed potato technology products The company was incorporated in 1910 and is headquartered in Kolkata, India.
How the Company Makes MoneyITC 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, positioning it well for sustainable growth and financial stability in the competitive Tobacco industry.
Income Statement
92
Very Positive
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
88
Very Positive
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
85
Very Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue794.54B753.23B673.91B709.37B606.68B492.73B
Gross Profit422.26B433.45B400.45B412.39B244.25B285.48B
EBITDA285.10B262.82B289.97B277.40B225.03B196.36B
Net Income348.99B347.47B204.59B191.92B152.43B131.61B
Balance Sheet
Total Assets0.00880.91B918.26B858.83B772.60B738.19B
Cash, Cash Equivalents and Short-Term Investments204.87B203.00B198.93B218.74B166.94B192.96B
Total Debt0.002.85B3.03B3.06B2.50B2.71B
Total Liabilities-703.98B176.93B169.36B163.44B144.38B131.25B
Stockholders Equity703.98B700.30B745.07B691.55B624.56B603.47B
Cash Flow
Free Cash Flow0.00153.48B136.16B161.35B136.34B106.90B
Operating Cash Flow0.00176.27B171.79B188.78B157.76B125.27B
Investing Cash Flow0.00-3.96B15.63B-57.32B-22.38B56.83B
Financing Cash Flow0.00-170.37B-185.51B-130.06B-135.81B-186.34B

ITC Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price405.05
Price Trends
50DMA
410.39
Negative
100DMA
415.21
Negative
200DMA
415.50
Negative
Market Momentum
MACD
-1.74
Positive
RSI
45.38
Neutral
STOCH
18.95
Positive
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 405.05 is below the 20-day moving average (MA) of 409.03, below the 50-day MA of 410.39, and below the 200-day MA of 415.50, indicating a bearish trend. The MACD of -1.74 indicates Positive momentum. The RSI at 45.38 is Neutral, neither overbought nor oversold. The STOCH value of 18.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ITC.

ITC Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
₹5.07T14.353.54%10.55%70.20%
70
Outperform
512.03B43.4720.44%0.96%32.82%39.97%
64
Neutral
199.65B70.2316.23%0.67%8.52%-10.77%
63
Neutral
44.95B26.8919.37%0.52%8.60%14.95%
58
Neutral
469.53B104.3310.12%0.56%11.79%1.04%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:ITC
ITC Limited
405.05
-67.72
-14.32%
IN:GODFRYPHLP
Godfrey Phillips India Ltd.
3,282.65
984.52
42.84%
IN:HATSUN
Hatsun Agro Product Limited
896.30
-283.94
-24.06%
IN:HERITGFOOD
Heritage Foods Limited
484.35
-143.15
-22.81%
IN:UBL
United Breweries Limited
1,775.80
-387.65
-17.92%
IN:VSTIND
VST Industries Limited
263.45
-100.11
-27.54%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 20, 2025