ITC ITC.NS
ITC Ltd is a diversified Indian conglomerate, with a core business in tobacco (cigarettes) and presence in FMCG (foods, personal care), hospitality, paper, and agribusiness. ITC Ltd shows solid financial health (DN/EBITDA of -0.87, operating margin of 24.87%) and an attractive dividend yield (5.71%), but the business is in decline with revenues falling -11.1% and profits -16.0%, which weighs on its valuation and growth.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
ITC Ltd is a diversified Indian conglomerate, with a core business in tobacco (cigarettes) and presence in FMCG (foods, personal care), hospitality, paper, and agribusiness. ITC Ltd shows solid financial health (DN/EBITDA of -0.87, operating margin of 24.87%) and an attractive dividend yield (5.71%), but the business is in decline with revenues falling -11.1% and profits -16.0%, which weighs on its valuation and growth.
Score by category
| Category | Score |
|---|---|
| Financial health | 8.8 |
| Quality / Moat | 8.5 |
| Valuation | 5.8 |
| Growth | 1.1 |
| Dividend | 6.5 |
| Momentum | 0.9 |
| Risk & Context | 6.4 |
OVERALL SCORE: 6.2/10
Context and risks
Elevated governance risk in India: weak minority protection and possible state intervention in key sectors. Furthermore, the 31% drop in momentum and the deterioration in revenues and profits reflect a declining business, not a value opportunity.
News considered in the analysis
- British American Tobacco plans to offload stake in India's ITC Hotels — La posible venta de la participación en ITC Hotels por parte de BAT podría generar valor para los accionistas de ITC, aunque es una operación que aún no está confirmada y su impacto en el negocio principal de tabaco es limitado.
Verdict: Hold, but with caution: the strength of the balance sheet and the dividend do not offset the operational deterioration and governance risk in India.
Main risk: The main risk is the structural deterioration of the business (falling revenues and profits) combined with governance risk in India, which may limit minority shareholder protection.
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