ITC Ltd.
FMCG · NSE
52-week range
₹287 – ₹427
From 52w high
-28.0%
RSI (14)
50.5
vs SMA 50 / 200
↑ 50 · ↓ 200
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.
- ✓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.
- ✗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.
- ·Two recent headlines (Business Today, The Indian Express — April 2026) directly reference FII exits and the stock reaching a 3-year low, identifying cigarette-volume pressure and demerger-related uncertainty as the three named headwinds.
- ·ITC Hotels signed two new Fortune properties in Maharashtra (April 2026), extending its hospitality footprint as the hotels business operates independently post-demerger.
- ·ITC is expanding into protein-rich foods targeting the health segment (BusinessLine, April 2026), representing a strategic adjacency to the core branded packaged goods portfolio.
- ?Does the 43.89% profit margin reflect a structural moat tied to the cigarette business, and how does ITC's margin trajectory change if cigarette volumes continue to decline over the next 3–5 years?
- ?The PE of 18.89x is the lowest in the FMCG peer set by a factor of 2–4x — does this discount reflect a permanent re-rating of tobacco-linked businesses globally, or a temporary compression tied to FII positioning cycles?
- ?With 5-year earnings growth at 0% and revenue CAGR at 6.7%, which business segments (FMCG, hotels, agribusiness, paperboards) are generating the margin dilution, and is the hotels demerger expected to change that mix?
- ?The consistency score of 81 and 4 FCF-positive years suggest capital discipline — but at a D/E of 0.507 and with a hotels business being spun off, how will the post-demerger capital structure affect dividend sustainability at the current 4.67% yield?
PE
18.9
Forward PE
18.4
ROE
—
Profit margin
+43.9%
D/E
0.51
Dividend yield
+4.7%
Quality score
44/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
4/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 10 May 2026.