FMCG · NSE/BSE: ITC
ITC
Market Cap ₹5.10L Cr
Verdict: Buy
Quality Scores
Multi-Bagger
74/100
Compounder Quality
89/100
Management Credibility
90/100
Governance
92/100
Cash Flow Quality
94/100
AI Summary
ITC is India's pre-eminent cigarette manufacturer, transitioning into a diversified FMCG powerhouse with scaled interests in Paperboards, Hotels, and Agri-business. Over the last decade, the company has maintained a fortress-like balance sheet while shifting its capital allocation towards 'FMCG Others' to de-risk its profile from cigarette-related regulatory headwinds. Despite moderate top-line growth (7% 10y CAGR), the financial health remains superlative with consistent ROEs above 25% and healthy ROCEs near 39%. The recent demerger initiatives for the Hotels business and a massive spike in…
Top Opportunities
- Exceptional ROCE consistently above 30%
- Almost zero net debt with high cash reserves
- Strong dividend yield of over 5%
Top Risks
- Poor 10-year stock price performance CAGR of 2%
- Regulatory risk from tobacco taxation and anti-smoking laws
- Substantial increase in working capital days recently
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