ITC Ltd.

NSE: ITC | BSE: 500875 | ISIN: INE154A01025 | Industry: Cigarettes-Tobacco Products
| Falling Comet
399.2500 -3.55 (-0.88%)
NSE Oct 13, 2025 15:31 PM
Volume: 9.5M
 

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ITC Ltd.
25 Jul 2020
399.25
-0.88%
Motilal Oswal
Expected dividend yield of 5-6% over the next two years and the apparent relief of cigarette sales bouncing back to near pre-COVID levels are not clear positives due to (a) persistent global ESG concerns on cigarettes (85% of EBIT in FY20), (b) overhang of further GST increase on cigarettes, (c) ITCs valuation premium to global tobacco majors like Philip Morris (trading at 15.2x one-year forward P/E) and BAT (at 8.1x), and (d) continuance of weak earnings trajectory (6.6% PBT CAGR over the last 5 years). PAT growth has still been better in high single-digits led by the Expected dividend yield of 5-6% over the next two years and the apparent relief of cigarette sales bouncing back to near pre-COVID levels are not clear positives due to (a) persistent global ESG concerns on cigarettes (85% of EBIT in FY20), (b) overhang of further GST increase on cigarettes, (c) ITCs valuation premium to global tobacco majors like Philip Morris (trading at 15.2x one-year forward P/E) and BAT (at 8.1x), and (d) continuance of weak earnings trajectory (6.6% PBT CAGR over the last 5 years).
ITC Ltd. is trading below all available SMAs
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