ITC vs NESTLEIND
Side-by-side comparison of ITC Ltd. and Nestle India Ltd.. Descriptive only — not investment advice.
ITC Ltd.
FMCG
Quality Score: 47/100
Nestle India Ltd.
FMCG
Quality Score: 68/100
At a glance
| Metric | ITC | NESTLEIND |
|---|---|---|
| Quality Score | 47/100 | 68/100 |
| P/E (trailing) | 17.8 | 78.3 |
| Forward P/E | 16.7 | 59.7 |
| ROE | +29.3% | +76.3% |
| Profit margin | +26.2% | +15.1% |
| Debt-to-equity | 3.29 | 8.62 |
| Dividend yield | +5.47% | +0.85% |
| 1Y price return | -26.5% | +20.9% |
| From 52w high | -28.2% | -5.6% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.50 | 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 ₹292.5, down 26.51% over the past 12 months and 28.16% below its 52-week high, with the price below both the 50-DMA (₹293.83) and 200-DMA (₹337.44). The stock carries a PE of 17.81 — the lowest among its 6 FMCG peers — alongside a dividend yield of 5.47% and ROE of 29.34%, set against 5-year earnings growth of -72.7% and revenue contraction of -5%. Debt-to-equity stands at 3.292 on a rising trend, and the quality score of 39 places ITC 5th of 6 in its FMCG peer group.
Nestle India trades at ₹1,414.80, up 20.95% over 12 months and 19.26% over the past 3 months, sitting 5.56% below its 52-week high and above both the 50-DMA (₹1,406.30) and 200-DMA (₹1,285.41). The company reports a trailing ROE of 76.34% — highest among 6 tracked FMCG peers — alongside a 5-year revenue CAGR of 23% and earnings CAGR of 27.4%, but carries a D/E of 8.621 with a rising debt trend that diverges from the asset-light FMCG profile. Trailing PE of 78.27 is the richest in the peer group; forward PE compresses to 59.71.
Pros
- ✓ROE of 29.34% ranks 3rd among 6 FMCG peers and exceeds HINDUNILVR (21.6%) and GODREJCP (15.1%), with FCF positive in 4 of the tracked years.
- ✓Dividend yield of 5.47% is notable in the FMCG sector context, where peers like NESTLEIND (PE 78.27) and HINDUNILVR (PE 48.71) carry materially higher valuations.
- ✓PE of 17.81 and forward PE of 16.69 represent the lowest absolute valuation in the 6-stock FMCG peer set; nearest peer is GODREJCP at 55.08.
- ✓Profit margin of 26.23% is consistent with ITC's diversified business mix, and RSI of 55.15 is in neutral territory, not in technically oversold range.
- ✓ROE of 76.34% ranks 1st of 6 FMCG peers (next best: BRITANNIA at 53.31%), demonstrating high capital efficiency over the available 3-year window.
- ✓Quality score of 61 ranks 1st in the peer set (range 38–58 for peers), with FCF positive in all 3 reported years and a 5-year earnings CAGR of 27.4%.
- ✓Price action is constructive: up 20.95% over 12 months and 19.26% over 3 months; RSI of 52.96 is in neutral territory with the stock above both 50-DMA and 200-DMA.
- ✓Revenue growth of 23% over 5 years and profit margin of 15.14% reflect durable top-line and bottom-line expansion over the available history.
Cons
- ✗5-year earnings growth of -72.7% and 5-year revenue growth of -5% reflect sustained multi-year contraction across both metrics, extending well beyond any single quarter.
- ✗Price ₹292.5 remains below the 50-DMA (₹293.83) and 200-DMA (₹337.44), with a 26.51% 12-month decline and a 52-week drawdown of -28.16%; the stock has not reclaimed either moving average.
- ✗Debt-to-equity of 3.292 on a rising trend is elevated relative to the FMCG sector median, with declining earnings increasing the financial leverage risk profile.
- ✗Quality score of 39 places ITC 5th of 6 in the FMCG peer set, with consistency score of 43 and ROE above 15% in only 4 of the tracked years, indicating uneven fundamental quality.
- ✗D/E of 8.621 with a rising debt trend is elevated relative to FMCG peers and structurally inconsistent with the asset-light franchise model typical of this peer group.
- ✗Persistence data spans only 3 years — the consistency score of 65/100 and high ROE cannot be verified across a broader cycle, limiting confidence in the long-run track record.
- ✗Trailing PE of 78.27 is the richest in the 6-peer FMCG set; the forward PE of 59.71 still exceeds all five peers on a trailing basis, compressing the margin relative to sector valuation.
- ✗News flow is sparse (4 articles total, 0 positive) with one FSSAI regulatory action headline involving Nestle among named brands — a low-level but active regulatory watchpoint.
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