ITC Limited (ITC) AI Stock Analysis

• Market Cap: ₹4.04T
• Dividend Yield: 3.52%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.49
• Revenue Growth: 4.55%
• EPS Growth: 70.17%
• Country: IN
• Employees: 37,312
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): 4.30
• Shares Outstanding: 12,529,229,500
• 10 Day Avg. Volume: 1,430,220
• 30 Day Avg. Volume: 1,283,198
• PEG Ratio: 0.21
• Price to Book (P/B): 7.26
• Price to Sales (P/S): 6.75
• P/FCF Ratio: 33.14
• 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: ₹392.50
• Price Target Upside: 12.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 16.43
• Revenue Forecast (FY): ₹738.37B

• Rating: 79 Outperform
• Price Target: ₹364.00 ▲(3.96% Upside)
• Action: Reiterated Date: 10/17/25
• Date: Action: Reiterated 10/17/25

ITC Limited's strong financial performance is the most significant factor driving its overall score, supported by a solid balance sheet and robust cash flow. The valuation is reasonable, offering a good dividend yield. Technical analysis suggests some caution due to short-term price trends, but overall, the stock is well-positioned in the Tobacco industry.

Positive Factors

Very strong balance sheet

ITC's extremely high equity ratio and near-zero leverage provide durable financial flexibility for capex, dividends, and shock-absorption. A 49.6% ROE indicates highly efficient capital deployment, supporting sustainable shareholder returns and strategic investments over time.

Robust cash generation

Consistent operating cash conversion and double-digit free cash flow growth underpin ITC's ability to fund organic growth, pay dividends, and pursue selective investments without relying on external debt, preserving long-term financial resilience and strategic optionality.

High and improving profitability

Sustained high gross margins and a sharp net margin improvement reflect pricing power, cost control and operating leverage across businesses. Combined with revenue growth, this durable profitability profile supports reinvestment, dividend capacity, and competitive advantage across segments.

Negative Factors

Heavy reliance on cigarettes exposes regulatory risk

A large share of profits tied to tobacco makes ITC structurally vulnerable to tax hikes, advertising restrictions and public-health regulation. These systemic risks can compress volumes, raise effective tax burdens and limit pricing, reducing sustainable earnings power over time.

Moderate top-line growth

Mid-single-digit revenue growth for a diversified conglomerate may constrain long-term margin expansion and scale benefits. To sustain higher returns, ITC must invest in distribution, innovation and premiumization; otherwise, slower topline gains could limit long-term earnings momentum.

Hotels segment cyclicality

The hospitality business is structurally cyclical and operating-levered; downturns or slow demand recovery can disproportionately depress segment profits and cash flow. This cyclical exposure can add volatility to consolidated earnings versus ITC's more stable FMCG and tobacco cash flows.

ITC Limited Business Overview & Revenue Model

Company Description

ITC 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 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, positioning it well for sustainable growth and financial stability.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	797.86B	753.23B	679.32B	709.37B	606.68B	492.73B
Gross Profit	440.75B	427.10B	402.53B	410.73B	336.21B	285.69B
EBITDA	263.98B	260.18B	253.73B	255.74B	204.94B	169.58B
Net Income	348.99B	347.47B	204.59B	191.92B	152.43B	131.61B
Balance Sheet
Total Assets	0.00	880.91B	918.26B	858.83B	772.60B	738.19B
Cash, Cash Equivalents and Short-Term Investments	204.87B	203.00B	198.93B	218.74B	166.94B	192.96B
Total Debt	0.00	2.85B	3.03B	3.06B	2.50B	2.71B
Total Liabilities	-703.98B	176.93B	169.36B	163.44B	144.38B	131.25B
Stockholders Equity	703.98B	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: 350.15
• 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 350.15 is above the 20-day moving average (MA) of 319.64, above the 50-day MA of 337.57, and below the 200-day MA of 386.88, indicating a bearish trend. The MACD of -2.84 indicates Negative momentum. The RSI at 42.81 is Neutral, neither overbought nor oversold. The STOCH value of 34.78 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	79 Outperform	₹4.04T	11.56	―	3.52%	4.55%	70.17%
GODFRYPHLP	69 Neutral	₹335.06B	26.10	―	1.29%	24.53%	39.08%
VSTIND	69 Neutral	₹40.21B	17.59	―	3.93%	―	―
UBL	65 Neutral	₹422.03B	103.20	―	0.62%	8.08%	-22.42%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HERITGFOOD	62 Neutral	₹30.51B	18.55	―	0.54%	9.83%	-0.92%
HATSUN	61 Neutral	₹199.81B	57.36	―	0.61%	10.61%	7.97%

ITC Limited Corporate Events

ITC Publishes Notice for NCLT Hearing on Proposed Amalgamation Scheme

ITC Limited has notified the stock exchanges that it has published newspaper advertisements regarding a tribunal-ordered hearing of a company petition on 6 February 2026 before the National Company Law Tribunal, Kolkata Bench. The petition seeks approval of a proposed Scheme of Amalgamation under the Companies Act, 2013, involving the merger of Sresta Natural Bioproducts Private Limited and Wimco Limited into ITC Limited, a move that, once sanctioned, is expected to consolidate these businesses within ITC’s corporate structure and potentially streamline operations and integration of acquired entities.

ITC Limited Announces Key Director Appointments

ITC Limited announced the successful passing of resolutions through a postal ballot for the appointment of Mr. Amitabh Kant as an Independent Director and the re-appointment of Mr. Hemant Malik as a Wholetime Director. This decision reflects ITC’s strategic focus on strengthening its leadership team to enhance governance and drive future growth.

ITC Limited Announces Key Board Appointments

ITC Limited has announced changes in its board of directors, with the appointment of Mr. Amitabh Kant as an Independent Director for five years starting January 2026, and the re-appointment of Mr. Hemant Malik as a Wholetime Director for two years starting August 2026. These appointments, approved by the company’s members through e-voting, are expected to strengthen ITC’s leadership and strategic direction, potentially impacting its market positioning and stakeholder relations positively.