ITC vs NESTLEIND
Side-by-side comparison of ITC Ltd. and Nestle India Ltd.. Descriptive only — not investment advice.
ITC Ltd.
FMCG
Quality Score: 61/100
Nestle India Ltd.
FMCG
Quality Score: 67/100
At a glance
| Metric | ITC | NESTLEIND |
|---|---|---|
| Quality Score | 61/100 | 67/100 |
| P/E (trailing) | 18.9 | 81.6 |
| Forward P/E | 18.4 | 62.3 |
| ROE | — | +76.3% |
| Profit margin | +43.9% | +15.1% |
| Debt-to-equity | 0.51 | 8.61 |
| Dividend yield | +4.67% | +0.81% |
| 1Y price return | -26.6% | +27.0% |
| From 52w high | -28.0% | -0.9% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.61 | 2.42 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
ITC trades at ₹307.45, down 26.6% over the past 12 months and 28% below its 52-week high, sitting 15.2% under its 200-DMA. At a PE of 18.89 the stock is the cheapest in its FMCG peer group by a wide margin (peers range 50–81x), while carrying a 43.89% profit margin and a 4.67% dividend yield. Five-year earnings growth is flat at 0% despite 6.7% revenue CAGR, and quality score of 44 ranks 5th of 6 peers.
Nestle India trades at ₹1,482.40, up 27.0% over the past 12 months and near its 52-week high with a drawdown of just -0.93%. The company ranks first among 6 FMCG peers on both ROE (76.34%) and quality score (61), but carries the highest trailing PE in the peer group at 81.55x and an elevated debt-to-equity of 8.61 with a rising debt trend. RSI at 78.51 signals overbought conditions across both the 50-DMA and 200-DMA.
Pros
- ✓Lowest PE in the FMCG peer group at 18.89x, versus a peer range of 50–81x (HINDUNILVR 50x, NESTLEIND 81x, BRITANNIA 52x, GODREJCP 57x, TATACONSUM 76x).
- ✓Profit margin of 43.89% stands as the most distinctive fundamental metric in this data set — well above the level typical of packaged-goods businesses.
- ✓Dividend yield of 4.67% is the highest income return visible among the FMCG peers in this cycle.
- ✓FCF-positive in 4 of the last available years and consistency score of 81, indicating above-average earnings reliability relative to reported peers.
- ✓ROE of 76.34% ranks first among the 6-stock FMCG peer set, well above Britannia (53.31%), Hindustan Unilever (21.6%), and Godrej Consumer (15.1%), indicating high capital efficiency relative to peers.
- ✓Revenue has grown at 23.8% over 5 years and earnings at 27.4% over the same period, reflecting consistent compounding of the top and bottom lines.
- ✓Quality score of 61 places NESTLEIND at the top of its FMCG peer group (next: HINDUNILVR at 58), and the stock carries a profit margin of 15.11%.
- ✓Price is 27.0% higher over 12 months and 14.4% higher over 3 months, with price above both the 50-DMA (₹1,293.98) and 200-DMA (₹1,244.37), reflecting sustained positive price momentum.
Cons
- ✗Five-year earnings growth of 0% against 6.7% revenue CAGR signals that profitability has failed to compound over the measurement window — a sustained divergence between top-line and bottom-line growth.
- ✗Price is 15.2% below the 200-DMA (₹307.45 vs ₹362.33) and has declined 26.6% over 12 months, reaching levels described in press coverage as a 3-year low.
- ✗Quality score of 44 ranks 5th out of 6 FMCG peers on the composite metric used in this analysis, despite the superior profit margin — indicating structural offsets such as capital intensity, cigarette-regulatory risk premium, or ROE drag.
- ✗FII outflows are cited in recent news as a direct pressure on the stock; the combination of index weight reduction and foreign selling has coincided with the sustained price decline.
- ✗Debt-to-equity of 8.61 is elevated relative to FMCG norms and the debt trend is classified as rising; this is an atypical capital structure for a consumer staples business and warrants monitoring.
- ✗ROE persistence data covers only 3 years above 15%, and FCF is positive in only 3 of the available years, making it difficult to assess whether the current profitability metrics are structurally durable.
- ✗RSI of 78.51 is in overbought territory; the price is 14.5% above the 50-DMA and 19.1% above the 200-DMA, indicating a significant extension from medium- and long-term averages.
- ✗Trailing PE of 81.55 is the highest in the 6-stock FMCG peer group; the forward PE of 62.28 implies meaningful earnings growth expectations are already embedded in the current price.
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