FREE

Screener.in
Export to Excel
Templete
 Created by - Devesh Balkote For Feedback - Deveshbalkote710@gmail.com Linkedin Twitter/X

ITC LTD
Financial Statement
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM

Income Statement Revenue

23%
80,000 25%
Revenue 35,306 38,817 39,192 42,768 43,449 48,340 49,388 49,257 60,645 70,919 69,612 70,000 17% 20%
60,000
% Growth YOY 10% 1% 9% 2% 11% 2% 0% 23% 17% -2% 11% 15%
50,000 10% 9%
COGS 15,281 16,916 15,722 18,317 18,207 20,038 20,035 22,418 29,163 32,566 43,354 40,000 10%
Gross Profit 20,026 21,901 23,470 24,450 25,242 28,302 29,353 26,839 31,482 38,353 30,000 2% 2% 5%
1% 0%
Gross Profit Margin 57% 56% 60% 57% 58% 59% 59% 54% 52% 54% 20,000
10,000 0%
% Growth YOY 9% 7% 4% 3% 12% 4% -9% 17% 22%
0 -5%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
SG&A 5,865 6,648 7,703 7,811 7,716 8,724 8,784 8,700 9,749 11,340
Revenue % Growth YOY
Other Expenses 1,080 1,001 1,236 1,169 1,006 1,040 1,225 1,074 1,110 1,309
EBITDA 13,080 14,252 14,531 15,470 16,521 18,537 19,344 17,065 20,623 25,704 28,713
Operating Profit Margin 37% 37% 37% 36% 38% 38% 39% 35% 34% 36% 41% EBITDA
% Growth YOY 9% 2% 6% 7% 12% 4% -12% 21% 25% 12% 30,000 25% 30%
21% 25%
25,000
20%
Other Income 966 1,229 1,483 1,759 2,240 2,080 2,417 2,577 1,910 2,098 2,455 20,000
12%
15%
9%
Other Income as % of Sales 3% 3% 4% 4% 5% 4% 5% 5% 3% 3% 4% 6% 7%
4% 10%
15,000 2%
Depreciation 965 1,028 1,077 1,153 1,236 1,397 1,645 1,646 1,732 1,809 1,813 5%
10,000 0%
EBIT 13,081 14,453 14,937 16,075 17,524 19,221 20,116 17,996 20,800 25,993 29,354
-5%
EBIT Margin 37% 37% 38% 38% 40% 40% 41% 37% 34% 37% 42% 5,000 -12%
-10%
% Growth YOY 10% 3% 8% 9% 10% 5% -11% 16% 25% 13% 0 -15%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Interest 29 91 78 49 115 71 81 58 60 78 44 EBITDA % Growth YOY

EBT 13,052 14,362 14,859 16,026 17,409 19,150 20,035 17,938 20,740 25,915 29,311
EBT Margin 37% 37% 38% 37% 40% 40% 41% 36% 34% 37% 42%
% Growth YOY 10% 3% 8% 9% 10% 5% -10% 16% 25% 13% Net Profit
25,000 26% 30%
21%
Tax 4,061 4,596 5,358 5,549 5,916 6,314 4,442 4,555 5,237 6,438 6,710
20,000 16% 20%
Tax Rate 31% 32% 36% 35% 34% 33% 22% 25% 25% 25% 23% 10% 10% 12%
9%
Net Profit 8,991 9,766 9,501 10,477 11,493 12,836 15,593 13,383 15,503 19,477 22,600 15,000 10%

Net Profit Margin 25% 25% 24% 24% 26% 27% 32% 27% 26% 27% 32% -3%
10,000 0%
% Growth YoY Net Profit 9% -3% 10% 10% 12% 21% -14% 16% 26% 16%
5,000 -14% -10%

Dividend Paid 4,772 5,010 6,840 5,770 6,285 7,049 12,477 13,232 14,172 19,263 0 -20%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
DPS 4.0 4.2 5.7 4.8 5.1 5.8 10.1 10.8 11.5 15.5
Dividend Pay Out Ratio 53% 51% 72% 55% 55% 55% 80% 99% 91% 99% Net Profit % Growth YoY Net Profit
Retained Earning 4,219 4,756 2,661 4,707 5,207 5,787 3,116 151 1,331 213
% Retained Earning 47% 49% 28% 45% 45% 45% 20% 1% 9% 1% Profit Margin
EPS 7.54 8.12 7.87 8.63 9.42 10.47 12.69 10.87 12.58 15.67 18.12 50%

40%

30%
Balance Sheet 20%
10%
ASSETS
0%
Net Block 12,921 15,303 15,107 15,893 16,524 19,374 21,713 23,298 24,232 25,851 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Capital Work in Progress 3,117 2,700 2,560 3,730 5,508 4,136 3,256 4,011 3,226 3,003
Operating Profit Margin EBT Margin Net Profit Margin
Investments 7,284 6,943 11,748 17,581 22,053 25,043 28,663 24,871 24,841 29,415
Receivables 2,439 1,982 1,917 2,474 2,682 4,035 2,562 2,502 2,462 2,956
Inventory 8,255 8,587 9,062 8,116 7,495 7,860 8,879 10,397 10,864 11,771
Cash & Bank 3,490 7,896 6,063 2,967 2,900 4,152 7,277 4,659 4,654 4,880
Other Assets 3,341 2,541 5,195 5,136 7,079 7,138 4,958 4,022 6,917 7,954
Total Asset 40,848 45,952 51,651 55,898 64,241 71,739 77,311 73,761 77,196 85,831

LIABILITIES
Borrowings 242 269 84 46 36 13 277 271 249 306
Trade Payable 2,106 2,020 2,339 2,659 3,496 3,510 3,630 4,319 4,417 4,659
Other Liabilities 11,263 11,928 6,549 6,781 8,199 9,075 8,130 8,824 10,074 11,711
Total Liabilities 13,611 14,217 8,972 9,485 11,731 12,598 12,037 13,413 14,740 16,676

EQUITY
Equity Share Capital 795 802 805 1,215 1,220 1,226 1,229 1,231 1,232 1,243
Reserves 26,442 30,934 41,875 45,198 51,290 57,915 64,044 59,116 61,223 67,912
Total Equity 27,237 31,735 42,680 46,413 52,510 59,141 65,273 60,347 62,456 69,155

Total Liability & Equity 40,848 45,952 51,651 55,898 64,241 71,739 77,311 73,761 77,196 85,831

Check OK OK OK OK OK OK OK OK OK OK
Working Capital 6,263 9,078 15,688 11,913 11,957 14,110 15,548 12,757 14,824 15,851
% Growth YOY 45% 73% -24% 0% 18% 10% -18% 16% 7%

Cash Flow Total

Cash from Operating Activity 7,344 9,843 9,799 10,627 13,169 12,583 14,690 12,527 15,776 18,878 125,236
Cash from Investing Activity -3,254 -5,275 -3,921 -3,251 -7,114 -5,546 -6,174 5,740 -2,238 -5,732 -36,766
Cash Flow
Cash from Financing Activity -4,122 -4,661 -5,613 -7,301 -6,221 -6,869 -8,181 -18,634 -13,581 -13,006 -88,188 25,000 115% 140%
101% 103% 101% 98% 102% 97% 120%
Net Cash Flow -32 -93 266 75 -166 169 334 -367 -43 139 282 20,000
82%
94% 94%
100%
Cash & Eq 3,490 7,896 6,063 2,967 2,900 4,152 7,277 4,659 4,654 4,880 15,000 80%
10,000 60%
40%
- Capex 2,500 2,993 740 3,110 3,645 2,875 3,104 3,986 1,890 3,290 5,000
20%
- Tax Shield ( Int*Tax) 9 29 28 17 39 24 18 15 15 19 0 0%
FREE CASH FLOW TO FIRM (FCFF) 4,835 6,821 9,031 7,500 9,485 9,685 11,568 8,526 13,870 15,568 92,055 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Average FCFE Last 3 Year 12,655 Net Income Cash from Operating Activity
Growth Rate YoY 32% -17% 26% 2% 19% -26% 63% 12%
FREE CASH FLOW TO FIRM (FCFF) FREE CASH FLOW TO EQUITY (FCFE)
CFO / Net Income
- Interest 29 91 78 49 115 71 81 58 60 78
+ Tax Shield ( Int*Tax) 9 29 28 17 39 24 18 15 15 19
- Debt Repayment 0 185 38 10 22 0 7 21 0
+ New Debt 26 0 0 0 0 264 0 0 57
FREE CASH FLOW TO EQUITY (FCFE) 6,786 8,796 7,430 9,400 9,615 11,768 8,476 13,804 15,566 91,641
Average FCFE Last 3 Year 12,616
Growth Rate YoY 30% -16% 27% 2% 22% -28% 63% 13%

Price 235 217 219 280 256 297 172 219 251 384
Adjusted Eq Shares 1,193 1,202 1,207 1,215 1,220 1,226 1,229 1,231 1,232 1,243
Market Cap 280,625 261,182 264,145 340,492 311,820 364,387 211,057 268,947 308,884 476,614
Enterprise Value (EV) 284,115 269,078 270,209 343,459 314,719 368,539 218,334 273,606 313,538 481,494
Book Value per share 23 26 35 38 43 48 53 49 51 56

Current Data
Number of shares 1,247.0
Face Value 1.0
Current Price 442.6
Mcap 551,932.8
Stock CAGR 3YR 32%
Stock CAGR 5YR 7%
Stock CAGR 10YR 6%
 Created by - Devesh Balkote For Feedback - Deveshbalkote710@gmail.com Linkedin Twitter/X

Quarters ITC LTD

Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23
Income Statement
Sales 14342 13247 13757 17108 16556 18489 17108 17705 17635 17164
% Growth QOQ -8% 4% 24% -3% 12% -7% 3% 0% -3%
% Growth YOY 15% 40% 24% 3% 7% -7%
Expenses 9,471 8,804 8,740 11,510 10,956 12,412 10,849 11,000 11,011 10,494
Depreciation 409 414 422 430 467 438 462 447 461 442
Operating Profit 4,463 4,030 4,596 5,168 5,132 5,639 5,797 6,258 6,163 6,228
Operating Profit Margin 31% 30% 33% 30% 31% 30% 34% 35% 35% 36%
% Growth QOQ -10% 14% 12% -1% 10% 3% 8% -2% 1%
% Growth YOY 15% 40% 26% 21% 20% 10%

Other Income 579 447 469 422 499 321 455 595 683 722
Interest 3 9 10 10 11 9 13 9 12 10
EBT 5,039 4,467 5,055 5,580 5,620 5,950 6,239 6,844 6,833 6,940
EBT Margin 35% 34% 37% 33% 34% 32% 36% 39% 39% 40%
% Growth QOQ -11% 13% 10% 1% 6% 5% 10% 0% 2%
% Growth YOY 12% 33% 23% 23% 22% 17%

Tax 1,222 1,124 1,291 1,462 1,361 1,488 1,568 1,774 1,608 1,760
Net profit 3,755 3,276 3,714 4,057 4,196 4,390 4,620 5,007 5,175 5,105
Net Profit Margin 26% 25% 27% 24% 25% 24% 27% 28% 29% 30%
% Growth QOQ -13% 13% 9% 3% 5% 5% 8% 3% -1%
% Growth YOY 12% 34% 24% 23% 23% 16%

Observation

Latest Quarter Latest 6 Months Period Latest 9 Months Period

Jun-23 Jun-22 Growth Latest Year Ago Growth Latest Year Ago Growth
Sales 17,164 18,489 -7% 34,799 35,045 -1% 52,504 52,153 1%
Expenses 10,494 12,412 21,505 23,368 32,505 34,879
Depreciation 442 438 904 905 1,351 1,335
Operating Profit 6,228 5,639 10% 12,390 10,771 15% 18,648 15,940 17%

Other Income 722 321 1,405 819 2,000 1,241

Interest 10 9 22 20 31 30
Profit before tax 6,940 5,950 13,773 11,571 20,617 17,151
Tax 1,760 1,488 3,368 2,849 5,142 4,311
Net profit 5,180.12 4462.25 16% 10405.14 8721.93 19% 15,475 12,841 21%

EBIT Margin 36% 30% 36% 31% 36% 31%

EBITDA Margin 39% 33% 38% 33% 38% 33%
PAT Margin 30% 24% 30% 25% 29% 25%
 Created by - Devesh Balkote For Feedback - Deveshbalkote710@gmail.com Linkedin Twitter/X

ITC LTD
Ratio Analysis
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Trend Mean Median Max Min

Efficiency Ratios
Inventory Turnover Rate 4.6 4.44 4.98 5.57 6.30 5.90 5.11 5.70 6.27 5.4 5.3 6.3 4.4
Average Inventory Days 79.2 82.2 73.3 65.6 58.0 61.9 71.4 64.0 58.2 68.2 68.5 82.2 58.0
Receivable Turnover Rate 17.6 20.44 17.28 16.20 11.98 19.27 19.69 24.63 23.99 19.0 18.4 24.6 12.0
Average Receivables Days 20.8 17.9 21.1 22.5 30.5 18.9 18.5 14.8 15.2 20.0 19.9 30.5 14.8
Payable Turnover Rate 18.8 17.98 17.11 14.12 13.80 13.83 12.39 13.88 15.63 15.3 14.0 18.8 12.4
Average Payable Days 19.4 20.3 21.3 25.9 26.5 26.4 29.5 26.3 23.4 24.3 26.1 29.5 19.4
Sales to Capital Employed 1.21 0.92 0.92 0.83 0.82 0.75 0.81 0.97 1.02 0.9 0.9 1.2 0.8
Working Capital Turnover Rate 4.53 4.58 4.99 5.86 5.89 6.71 6.03 6.95 7.28 5.9 5.9 7.3 4.5
Average Working Capital Cycle 80.6 79.74 73.09 62.25 61.99 54.41 60.51 52.51 50.11 63.9 62.1 80.6 50.1
Average Working Capital Turnover 4.5 4.6 5.0 5.9 5.9 6.7 6.0 7.0 7.3 5.9 5.9 7.3 4.5
Average Fixed Asset Turnover 2.3 2.2 2.3 2.1 2.1 2.0 1.9 2.2 2.5 2.2 2.2 2.5 1.9
Asset Turnover Rate 0.86 0.84 0.76 0.77 0.68 0.67 0.64 0.67 0.79 0.83 0.7 0.7 0.8 0.6

Liquidity Ratio
Current Ratio 1.56 1.76 3.40 2.76 2.46 2.55 2.91 2.45 2.47 2.35 2.6 2.5 3.4 1.8
Quick Ratio 0.82 1.04 2.01 1.56 1.54 1.69 1.82 1.27 1.39 1.35 1.5 1.6 2.0 1.0
Cash Ratio 0.61 0.88 1.72 1.20 1.22 1.24 1.51 0.98 1.15 1.10 1.2 1.2 1.7 0.9

Solvency Ratio
Debt to Equity 0.01 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0 0.0 0.0 0.0
Debt to Capital Ratio 0.23 0.25 0.09 0.04 0.03 0.01 0.18 0.18 0.17 0.20 0.1 0.1 0.3 0.0
Debt to Asset 0.01 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0 0.0 0.0 0.0
Financial Leverage Ratio 1.50 1.45 1.21 1.20 1.22 1.21 1.18 1.22 1.24 1.24 1.2 1.2 1.4 1.2
Interest Coverage Ratio 448.43 158.89 191.18 327.87 152.37 269.20 247.19 310.44 346.73 334.23 259.8 258.2 346.7 152.4
Debt to EBITDA 0.02 0.02 0.01 0.00 0.00 0.00 0.01 0.02 0.01 0.01 0.0 0.0 0.0 0.0
Interest / BV of debt 12% 34% 93% 107% 320% 531% 29% 21% 24% 25% 1.3 0.6 5.3 0.2

Profitability Ratio
Gross Profit Margin 57% 56% 60% 57% 58% 59% 59% 54% 52% 54% 0.6 0.6 0.6 0.5
Operating Profit Margin (EBITDA) 37% 37% 37% 36% 38% 38% 39% 35% 34% 36% 0.4 0.4 0.4 0.3
EBIT Margin 37% 37% 38% 38% 40% 40% 41% 37% 34% 37% 0.4 0.4 0.4 0.3
EBT Margin 35% 34% 37% 33% 34% 32% 36% 39% 39% 40% 0.4 0.4 0.4 0.3
Net Profit Margin 25% 25% 24% 24% 26% 27% 32% 27% 26% 27% 0.3 0.3 0.3 0.2

Capital Allocation Ratio

Return on Asset ROA 22% 23% 19% 19% 19% 19% 21% 18% 21% 24% 0.2 0.2 0.2 0.2
Operating ROA 32% 33% 31% 30% 29% 28% 27% 24% 28% 32% 0.3 0.3 0.3 0.2
Return on Equity ROE 33% 31% 22% 23% 22% 22% 24% 22% 25% 28% 0.2 0.2 0.3 0.2
Return on Capital Employed ROCE 49% 40% 36% 35% 34% 32% 29% 34% 39% 0.4 0.3 0.5 0.3
Return on Invested Capital ROIC 38% 41% 26% 24% 23% 23% 27% 24% 27% 30% 0.3 0.3 0.4 0.2

Valuation Ratio
Price/Earnings 31.2 26.7 27.8 32.5 27.1 28.4 13.5 20.1 19.9 24.5 24.5 26.9 32.5 13.5
Price/Book 10.30 8.23 6.19 7.34 5.94 6.16 3.23 4.46 4.95 6.89 5.9 6.0 8.2 3.2
Price/Cashflows 38.2 26.5 27.0 32.0 23.7 29.0 14.4 21.5 19.6 25.2 24.3 25.1 32.0 14.4
Price/Sales 7.9 6.7 6.7 8.0 7.2 7.5 4.3 5.5 5.1 6.7 6.4 6.7 8.0 4.3
Price/CFO 38.2 26.5 27.0 32.0 23.7 29.0 14.4 21.5 19.6 25.2 24.3 25.1 32.0 14.4
EV/EBITDA 21.7 18.9 18.6 22.2 19.1 19.9 11.3 16.0 15.2 18.7 17.8 18.7 22.2 11.3
BVPS 22.8 26.4 35.4 38.2 43.0 48.2 53.1 49.0 50.7 55.6 44.4 45.6 55.6 26.4

Cash Flow Ratio

CFO/Net Income 82% 101% 103% 101% 115% 98% 94% 94% 102% 97% 1.0 1.0 1.1 0.9
CFO/EBITDA 56% 69% 67% 69% 80% 68% 76% 73% 76% 73% 0.7 0.7 0.8 0.7
FCFF/CFO 69% 92% 71% 72% 77% 79% 68% 88% 82% 0.8 0.7 0.9 0.7
FCFE/CFO 69% 90% 70% 71% 76% 80% 68% 88% 82% 0.8 0.7 0.9 0.7
Re-Investment(Capex/CFO) 30% 8% 29% 28% 23% 21% 32% 12% 17% 0.2 0.3 0.3 0.1
FCFF/Sales 18% 23% 18% 22% 20% 23% 17% 23% 22% 0.2 0.2 0.2 0.2

Altman Z-score Z-Weight

Working Capital / Total Assets 0.15 0.20 0.30 0.21 0.19 0.20 0.20 0.17 0.19 0.18 1.2 0.2 0.2 0.3 0.2
Retained Earnings / Total Assets 0.10 0.10 0.05 0.08 0.08 0.08 0.04 0.00 0.02 0.00 1.4 0.1 0.1 0.1 0.0
EBIT / Total Assets 0.32 0.31 0.29 0.29 0.27 0.27 0.26 0.24 0.27 0.30 3.3 0.3 0.3 0.3 0.2
Market cap / Total Assets 6.87 5.68 5.11 6.09 4.85 5.08 2.73 3.65 4.00 5.55 0.6 4.8 5.0 6.1 2.7
Sales / Total Assets 0.86 0.84 0.76 0.77 0.68 0.67 0.64 0.67 0.79 0.83 1 0.7 0.7 0.8 0.6
Altman Z-Score 6.37 5.67 5.22 5.74 4.83 4.95 3.43 3.87 4.33 5.38 4.8 4.9 5.7 3.4
 Created by - Devesh Balkote For Feedback - Deveshbalkote710@gmail.com Linkedin Twitter/X

Common Size Statement

ITC LTD
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Income Statement
Revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
COGS 43.3% 43.6% 40.1% 42.8% 41.9% 41.5% 40.6% 45.5% 48.1% 45.9%
Gross Profit 56.7% 56.4% 59.9% 57.2% 58.1% 58.5% 59.4% 54.5% 51.9% 54.1%
Other Income 2.7% 3.2% 3.8% 4.1% 5.2% 4.3% 4.9% 5.2% 3.1% 3.0%
SG&A 16.6% 17.1% 19.7% 18.3% 17.8% 18.0% 17.8% 17.7% 16.1% 16.0%
Other Expenses 3.1% 2.6% 3.2% 2.7% 2.3% 2.2% 2.5% 2.2% 1.8% 1.8%
EBITDA 37.0% 36.7% 37.1% 36.2% 38.0% 38.3% 39.2% 34.6% 34.0% 36.2%
Depreciation 2.7% 2.6% 2.7% 2.7% 2.8% 2.9% 3.3% 3.3% 2.9% 2.6%
Interest 0.1% 0.2% 0.2% 0.1% 0.3% 0.1% 0.2% 0.1% 0.1% 0.1%
EBT 37.0% 37.0% 37.9% 37.5% 40.1% 39.6% 40.6% 36.4% 34.2% 36.5%
Tax 11.5% 11.8% 13.7% 13.0% 13.6% 13.1% 9.0% 9.2% 8.6% 9.1%
Net Profit 25.5% 25.2% 24.2% 24.5% 26.5% 26.6% 31.6% 27.2% 25.6% 27.5%
Dividend Paid 13.5% 12.9% 17.5% 13.5% 14.5% 14.6% 25.3% 26.9% 23.4% 27.2%

Balance Sheet
ASSETS
Net Block 32% 33% 29% 28% 26% 27% 28% 32% 31% 30%
Capital Work in Progress 8% 6% 5% 7% 9% 6% 4% 5% 4% 3%
Investments 18% 15% 23% 31% 34% 35% 37% 34% 32% 34%
Receivables 6% 4% 4% 4% 4% 6% 3% 3% 3% 3%
Inventory 20% 19% 18% 15% 12% 11% 11% 14% 14% 14%
Cash & Bank 9% 17% 12% 5% 5% 6% 9% 6% 6% 6%
Other Assets 8% 6% 10% 9% 11% 10% 6% 5% 9% 9%
Total Asset 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
LIABILITIES
Borrowings 1.8% 1.9% 0.9% 0.5% 0.3% 0.1% 2.3% 2.0% 1.7% 1.8%
Other Liabilities 82.7% 83.9% 73.0% 71.5% 69.9% 72.0% 67.5% 65.8% 68.3% 70.2%
Total Liabilities 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
EQUITY
Equity Share Capital 3% 3% 2% 3% 2% 2% 2% 2% 2% 2%
Reserves 97% 97% 98% 97% 98% 98% 98% 98% 98% 98%
Total Equity 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
 Created by - Devesh Balkote For Feedback - Deveshbalkote710@gmail.com Linkedin Twitter/X

Cost Analysis
ITC LTD
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Revenue 35,306 38,817 39,192 42,768 43,449 48,340 49,388 49,257 60,645 70,919
Other Income 966 1,229 1,483 1,759 2,240 2,080 2,417 2,577 1,910 2,098
Sales increase 10% 1% 9% 2% 11% 2% 0% 23% 17%
EBIT 13,081 14,453 14,937 16,075 17,524 19,221 20,116 17,996 20,800 25,993
Growth in EBIT 10% 3% 8% 9% 10% 5% -11% 16% 25%

Operating Expenses
Raw Material Cost 13,353 15,008 13,764 15,457 14,828 17,624 18,049 20,777 27,071 29,364
Change in Inventory 113 236 195 -593 -1,028 203 703 645 686 359
Power and Fuel 645 611 572 584 654 747 781 700 890 1,232
Other Mfr. Exp 1,396 1,533 1,582 1,684 1,698 1,871 1,908 1,587 1,888 2,328
Employee Cost 2,504 2,772 3,441 3,632 3,761 4,178 4,296 4,463 4,891 5,736
Selling and admin 3,361 3,876 4,262 4,180 3,955 4,546 4,489 4,237 4,858 5,604
Other Expenses 1,080 1,001 1,236 1,169 1,006 1,040 1,225 1,074 1,110 1,309
Interest 29 91 78 49 115 71 81 58 60 78

Common Size Expenses

Raw Material Cost 37.82% 38.66% 35.12% 36.14% 34.13% 36.46% 36.54% 42.18% 44.64% 41.41%
Change in Inventory 0.32% 0.61% 0.50% -1.39% -2.37% 0.42% 1.42% 1.31% 1.13% 0.51%
Power and Fuel 1.83% 1.57% 1.46% 1.37% 1.50% 1.54% 1.58% 1.42% 1.47% 1.74%
Other Mfr. Exp 3.95% 3.95% 4.04% 3.94% 3.91% 3.87% 3.86% 3.22% 3.11% 3.28%
Employee Cost 7.09% 7.14% 8.78% 8.49% 8.66% 8.64% 8.70% 9.06% 8.06% 8.09%
Selling and admin 9.52% 9.99% 10.87% 9.77% 9.10% 9.41% 9.09% 8.60% 8.01% 7.90%
Other Expenses 3.06% 2.58% 3.15% 2.73% 2.32% 2.15% 2.48% 2.18% 1.83% 1.85%
Interest 0.08% 0.23% 0.20% 0.11% 0.26% 0.15% 0.16% 0.12% 0.10% 0.11%

Year on Year Escalation (1)

Raw Martial Increase / Sales Increase 1.25 -8.58 1.35 -2.55 1.68 1.11 -57.31 1.31 0.50
Change in Inventory Increase/ Sales Increase 10.97 -17.72 -44.21 46.10 -10.64 113.48 31.20 0.27 -2.82
Power and Fuel Increase / Sales Increase -0.53 -6.58 0.24 7.43 1.27 2.11 39.47 1.18 2.27
Other Mfr. Exp Increase / Sales increase 0.99 3.26 0.71 0.51 0.91 0.92 63.80 0.82 1.38
Employee Cost Increase / Sales increase 1.08 24.97 0.61 2.23 0.99 1.30 -14.79 0.41 1.02
Selling and admin Increase / Sales increase 1.54 10.30 -0.21 -3.38 1.33 -0.59 21.28 0.63 0.91
Other Expenses Increase / Sales increase -0.74 24.30 -0.59 -8.76 0.30 8.22 46.65 0.14 1.06

Year on Year Escalation (2)

Working Capital Increase/ Sales Increase 4.52 75.38 -2.64 0.23 1.60 4.70 68.07 0.70 0.41
Reservable Increase / Sales Increase -1.88 -3.39 3.19 5.28 4.48 -16.83 8.99 -0.07 1.19
Inventory Increase / Sales increase 0.40 5.73 -1.14 -4.80 0.43 5.98 -64.82 0.19 0.49
Creditors increase / Sales Increase -874.94 32921.33 3496.65 52475.58 115.49 5488.31 -260873.23 419.60 1422.49
Invested Capital Increase / Sales Increase 2.93 24.45 0.15 7.68 1.27 6.55 39.55 0.14 0.61

Dilution
Equity Capital Increase/Decrease 0.78% 0.40% 50.95% 0.47% 0.44% 0.27% 0.14% 0.12% 0.85%
 Created by - Devesh Balkote For Feedback - Deveshbalkote710@gmail.com Linkedin Twitter/X

Management Check ITC LTD

List 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Potential Problem
% Increase in Sales 9.94% 0.97% 9.12% 1.59% 11.26% 2.17% -0.26% 23.12% 16.94%
% Increase in Receivables -18.74% -3.27% 29.06% 8.41% 50.44% -36.50% -2.37% -1.59% 20.08%
% Increase in Inventory 4.02% 5.53% -10.44% -7.65% 4.86% 12.97% 17.09% 4.49% 8.35%
% Increase in Payable -4.08% 15.79% 13.68% 31.48% 0.40% 3.42% 18.98% 2.27% 5.48%
Inventory / Sales 23.38% 22.12% 23.12% 18.98% 17.25% 16.26% 17.98% 21.11% 17.91% 16.60%
Receivable / Sales 6.91% 5.11% 4.89% 5.79% 6.17% 8.35% 5.19% 5.08% 4.06% 4.17%
Payable / Sales 5.96% 5.20% 5.97% 6.22% 8.05% 7.26% 7.35% 8.77% 7.28% 6.57%
Cash Yield 8.96% 8.28% 8.33% 8.56% 8.98% 7.13% 6.73% 8.73% 6.47% 6.12%
Depreciation Rate 2.73% 2.65% 2.75% 2.70% 2.85% 2.89% 3.33% 3.34% 2.86% 2.55%
CFO / Net Profit 82% 101% 103% 101% 115% 98% 94% 94% 102% 97%
CFO / EBITDA 56% 69% 67% 69% 80% 68% 76% 73% 76% 73%
Self Sustainable Growth Rate (SSGA) 15.49% 14.99% 6.23% 10.14% 9.92% 9.79% 4.77% 0.25% 2.13% 0.31%
Dividend Paid 4,772 5,010 6,840 5,770 6,285 7,049 12,477 13,232 14,172 19,263
Dividend Payout Ratio 53% 51% 72% 55% 55% 55% 80% 99% 91% 99%
CWIP/Net Block 24.13% 17.64% 16.94% 23.47% 33.34% 21.35% 15.00% 17.22% 13.31% 11.62%
Employee Cost % of Sales 7.09% 7.14% 8.78% 8.49% 8.66% 8.64% 8.70% 9.06% 8.06% 8.09%
Market Value Added (MVA) 256,636 237,074 227,445 297,000 262,173 309,385 152,784 212,988 250,833 412,033
MVA Per Share 215.1 197.2 188.4 244.5 214.8 252.4 124.3 173.0 203.5 331.5
EBT / Avg Net Fixed Asset 102% 98% 103% 107% 107% 98% 80% 87% 103%

Business Robustness Snap Shot

Sales 35,306 38,817 39,192 42,768 43,449 48,340 49,388 49,257 60,645 70,919
EBIT 13,081 14,453 14,937 16,075 17,524 19,221 20,116 17,996 20,800 25,993
Operating Profit 13,080 14,252 14,531 15,470 16,521 18,537 19,344 17,065 20,623 25,704
Operating Profit Margin 37% 37% 37% 36% 38% 38% 39% 35% 34% 36%
1YR Sales Increase 9.94% 0.97% 9.12% 1.59% 11.26% 2.17% -0.26% 23.12% 16.94%
3YR Sales Increase 21.13% 11.93% 23.34% 15.48% 13.37% 25.46% 43.60%
1YR Operating Profit Increase 10.49% 3.35% 7.62% 9.01% 9.68% 4.65% -10.54% 15.58% 24.96%
3YR Operating Profit Increase 22.89% 21.25% 28.68% 25.14% 2.69% 8.22% 29.22%
1YR Operating Leverage 1.06 3.47 0.84 5.66 0.86 2.15 0.00 0.67 1.47
3YR Operating Leverage 1.08 1.78 1.23 1.62 0.00 0.32 0.67

EBIT Margin 37% 37% 38% 38% 40% 40% 41% 37% 34% 37%
Invested Capital 23,989 24,108 36,700 43,491 49,646 55,002 58,273 55,959 58,051 64,581
Capital Turns 1.47 1.61 1.07 0.98 0.88 0.88 0.85 0.88 1.04 1.10
ROIC 37% 28% 23% 22% 22% 24% 20% 25% 29% 0%
5YR Rolling 27% 24% 22% 23% 24% 20%
Economic Profit Added (EPA) 6,090.6 3,928.2 4,162.9 4,204.2 4,943.7 6,776.7 4,743.8 7,146.4 10,036.2 -7,749.7
EPA / Share 5.11 3.27 3.45 3.46 4.05 5.53 3.86 5.81 8.14 -6.24

Threshold Margin Snapshot

Incremental Fixed Capital Investment Rate 56% -90% 55% 354% 30% 139% -1797% 1% 14%
Incremental Working Capital Rate 80% 1763% -106% 6% 44% 137% 2143% 18% 10%
Incremental Threshold Margin 21.18% 263.62% -8.52% 59.00% 12.05% 44.17% 47.63% 2.81% 3.50%
Threshold Margin (Value Neutral Operating Margin) 35.61% 39.40% 34.21% 37.92% 37.47% 39.86% 40.71% 30.20% 29.84%
Threshold Exceed Rate 1% -3% 3% -2% 1% -2% -2% 4% 4%
 Created by - Devesh Balkote For Feedback - Deveshbalkote710@gmail.com Linkedin Twitter/X

ITC LTD
Capital Allocation
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Number of shares 1,247 Net Profit 8,991 9,766 9,501 10,477 11,493 12,836 15,593 13,383 15,503 19,477
Face Value 1 Dividend Paid 4,772 5,010 6,840 5,770 6,285 7,049 12,477 13,232 14,172 19,263
Last Closing price 434 Retained Earning 4,219 4,756 2,661 4,707 5,207 5,787 3,116 151 1,331 213
Market Capitalization 541,208 Market Cap 280,625 261,182 264,145 340,492 311,820 364,387 211,057 268,947 308,884 476,614
WACC 12% Capex 2,993 740 3,110 3,645 2,875 3,104 3,986 1,890 3,290

10YR Profit Growth Rate CAGR 8% Value Created Per INR of RE Profit Growth Vs Mcap Growth
5YR Profit Growth Rate CAGR 9% Year Cumulative RE Change in Mcap Value added Compounding Multiple Change in Mcap/Change In Profit
10YR Mcap Change 7% 3YR 1,696 272,261 160.57 5YR 0.95
5YR Mcap Change 8% 5YR 10,599 176,821 16.68 10YR 0.84
10YR 32,149 260,584 8.11

Capex Ratio
Capex / Net Profit 3YR 19%
Capex / Net Profit 5YR 20%
Capex / Net Profit 10YR 20%

Economic Value Added (EVA) 6,106 4,954 4,548 4,502 5,210 6,978 4,650 7,280 10,601
EVA Per Share 4.9 4.0 3.6 3.6 4.2 5.6 3.7 5.8 8.5
EVA / Sales 16% 13% 11% 10% 11% 14% 9% 12% 15%
EVA / Sales Increase 3YR -5% -2% 0% 4% -1% -2% 6%

ROIC Analysis
FROM THE LIABILITY SIDE Return on Average Invested Capital (ROIC)
Median Min Max Operating EBIT 12,115 13,224 13,454 14,317 15,284 17,141 17,699 15,419 18,891 23,895
32% 22% 36% Tax Rate 31% 32% 36% 35% 34% 33% 22% 25% 25% 25%
ROIC (EBIAT/Avg Invested Capital) NOPAT 8,345 8,992 8,603 9,360 10,090 11,489 13,775 11,504 14,120 17,959

Invested capital from Liability Side = BV of Equity + Net Debt (Borrowing - Cash)
Invested Capital 23,989 24,108 36,700 43,491 49,646 55,002 58,273 55,959 58,051 64,581
Average Invested Capital 24,049 30,404 40,096 46,569 52,324 56,638 57,116 57,005 61,316

24% 20% 37% ROIC (EBIAT/Avg Invested Capital) 37% 28% 23% 22% 22% 24% 20% 25% 29%
DuPont Breakup
23% 22% 28% Operating margin (NOPAT/Sales) 23% 22% 22% 23% 24% 28% 23% 23% 25%
1.1 0.9 1.6 Capital Efficiency (Sales/Avg invested Capital) 1.6 1.3 1.1 0.9 0.9 0.9 0.9 1.1 1.2

FROM THE ASSET SIDE Return on Average Invested Capital (ROIC) With Breakdown
Median Min Max
34% 31% 36% Operating EBIT Margin 34% 34% 34% 33% 35% 35% 36% 31% 31% 34%
Operating EBIT Margin Gross Margin 57% 56% 60% 57% 58% 59% 59% 54% 52% 54%
-SG&A & Others 20% 20% 23% 21% 20% 20% 20% 20% 18% 18%
-Depreciation 3% 3% 3% 3% 3% 3% 3% 3% 3% 3%

ROIC Predictor
1.17 1.05 1.42 Sales/Avg Invested Capital 1.13 1.05 1.17 1.17 1.18 1.12 1.10 1.31 1.42 Operating EBIT Margin Mean Median Min Max
Gross Margin 55% 57% 57% 52% 60%
Net Working Capital 8,588 8,549 8,640 7,931 6,681 8,385 7,812 8,580 8,909 10,068 -SG&A & Others 20% 20% 20% 18% 23%
Average Net Working Capital 8,569 8,595 8,286 7,306 7,533 8,098 8,196 8,744 9,489 -Depreciation 3% 3% 3% 3% 3%
17% 13% 22% Avg Working Capital/ Sales 22% 22% 19% 17% 16% 16% 17% 14% 13% Op EBIT Margin 32% 34% 34% 31% 36%
6.0 4.5 7.5 Avg Working Capital Turnover 4.5 4.6 5.2 5.9 6.4 6.1 6.0 6.9 7.5
Capital Efficiency Average Inventory Days 79 82 73 66 58 62 71 64 58 Sales / Avg Invested Capital Mean Median Min Max
Average Receivables Days 21 18 21 23 30 19 19 15 15 Fixed Asset Turnover 2.2 2.2 2.2 1.9 2.5
Average Payable Days 19 20 21 26 26 26 29 26 23 Working Capital Turnover 5.62 5.9 6.0 4.5 7.5
Avg Working Capital Cycle Day 81 80 73 62 62 54 61 53 50 Average Inventory Days 65 68 66 58 82
Average Receivables Days 20 20 19 15 30
Fixed Asset 16,039 18,003 17,666 19,623 22,032 23,511 24,970 27,310 27,457 28,855 Average Payable Days 20 24 26 19 29
Average Fixed Assets 17,021 17,835 18,645 20,828 22,771 24,240 26,140 27,383 28,156 Avg Working Capital Cycle Day 65 64 62 50 81
46% 40% 53% Avg Fixed Asset / Sales 44% 46% 44% 48% 47% 49% 53% 45% 40% Sales / Avg Invested Capital 1.58 1.18 1.17 1.05 1.42
2.2 1.9 2.5 Avg Fixed Assets Turnover 2.3 2.2 2.3 2.1 2.1 2.0 1.9 2.2 2.5
Forecasted ROIC Mean Median Min Max
Cash & Bank 3,490 7,896 6,063 2,967 2,900 4,152 7,277 4,659 4,654 4,880 ROIC Pre-Tax 51% 40% 40% 34% 48%
Other Assets 3,341 2,541 5,195 5,136 7,079 7,138 4,958 4,022 6,917 7,954 Effective Tax Rate 25% 30% 32% 22% 36%
Non-Operating Assets 6,831 10,437 11,258 8,103 9,978 11,290 12,236 8,681 11,572 12,834
Average Non-Operating Assets 8,634 10,848 9,681 9,041 10,634 11,763 10,459 10,127 12,203 Roic Post-Tax 38% 28% 27% 25% 36%
24% 20% 28% Average Non-Operating Assets /Sales 24% 28% 25% 21% 24% 24% 21% 21% 20%
4.1 3.6 5.0 Average Non-Operating Turnover 4.09 3.58 4.05 4.73 4.09 4.11 4.72 4.86 4.97 Converting ROIC to ROE
Return on Equity Mean Median Min Max
ROIC Pre-Tax Debt / Equity 0.01 0.00 0.00 0.00 0.01
Avg Invested Capital from Asset Side = Avg Net Block & CWIP + Avg Net Working Capital + Avg Other Operating Assets Interest / Book Value of Debt 12% 120% 32% 12% 531%
Avg Invested Capital 34,224 37,277 36,611 37,175 40,939 44,101 44,794 46,254 49,847 Tax Rate 25% 30% 32% 22% 36%
Avg Invested Capital Turnover 1.03 1.04 1.07 1.15 1.06 1.10 1.10 1.06 1.22 ROE 38% 25% 23% 22% 33%

40% 34% 48% ROIC Pre-Tax 39% 36% 39% 41% 42% 40% 34% 41% 48%
Effective Tax Rate 31% 32% 36% 35% 34% 33% 22% 25% 25%
27% 25% 36% ROIC Post-Tax 27% 25% 25% 27% 28% 27% 27% 30% 36%

Incremental And Rolling ROIIC

ROIIC NOPAT 8,345 8,992 8,603 9,360 10,090 11,489 13,775 11,504 14,120 17,959
Cumulative NOPAT 114,236 Incremental NOPAT 646 -389 757 730 1,399 2,285 -2,271 2,617 3,838
Cumulative Incremental Capital Employed 40,592 Capital Employed 23,989 24,108 36,700 43,491 49,646 55,002 58,273 55,959 58,051 64,581
Reinvestment Rate 36% Incremental Capital Employed 119 12,592 6,791 6,155 5,356 3,271 -2,314 2,091 6,531
Return on Incremental Capital
24% Rolling ROIIC -327% 6% 11% 23% 43% -69% -113% 184%
Employed (ROIIC) of 10yr
Rolling ROIC 3YR 4% 16% 30% 22% 86% 66%
Rolling ROIC 5YR 10% 14% 15% 33% 53%

Dupont Analysis of ROE

ROE Break-Down Revenue 35,306 38,817 39,192 42,768 43,449 48,340 49,388 49,257 60,645 70,919
33% EBT 13,052 14,362 14,859 16,026 17,409 19,150 20,035 17,938 20,740 25,915
ROE
2.00 31% 35%
28%
1.5 25% 30% EBIT 13,081 14,453 14,937 16,075 17,524 19,221 20,116 17,996 20,800 25,993
1.4 24%
1.50 22% 23% 22% 22% 22% Interest 29 91 78 49 115 71 81 58 60 78
1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 25%
20% Tax 4,061 4,596 5,358 5,549 5,916 6,314 4,442 4,555 5,237 6,438
1.00
15% Net Profit 8,991 9,766 9,501 10,477 11,493 12,836 15,593 13,383 15,503 19,477 ROA Leverage
10%
0.50 Total Equity 27,237 31,735 42,680 46,413 52,510 59,141 65,273 60,347 62,456 69,155
5%
Total Asset 40,848 45,952 51,651 55,898 64,241 71,739 77,311 73,761 77,196 85,831
0.00 25% 25% 24% 24% 26% 27% 32% 27% 26% 27% 0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Net Profit Asset
Asset Turnover Financial Leverage Ratio 3 STAGE MODEL Turnover
Net Profit Margin ROE Net Profit Margin 25% 25% 24% 24% 26% 27% 32% 27% 26% 27%
Margin
Asset Turnover 0.86 0.84 0.76 0.77 0.68 0.67 0.64 0.67 0.79 0.83
Financial Leverage Ratio 1.5 1.4 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2
ROE 33% 31% 22% 23% 22% 22% 24% 22% 25% 28% Tax Burden
5 STAGE MODEL
Tax Burden 69% 68% 64% 65% 66% 67% 78% 75% 75% 75% Interest
Interest Burden 0.93 0.92 0.90 0.90 0.88 0.90 0.89 0.87 0.91 0.92
EBIT Margin 40% 40% 42% 42% 45% 44% 46% 42% 37% 40%
Burden
Asset Turnover 0.86 0.84 0.76 0.77 0.68 0.67 0.64 0.67 0.79 0.83
Financial Leverage Ratio 1.50 1.45 1.21 1.20 1.22 1.21 1.18 1.22 1.24 1.24
EBIT
ROE 33% 31% 22% 23% 22% 22% 24% 22% 25% 28%
Margin
CHECK OK OK OK OK OK OK OK OK OK OK

Incremental ROE 3YR Rolling 13% 14% 27% 33% 13% 29% 84%
 Created by - Devesh Balkote For Feedback - Deveshbalkote710@gmail.com Linkedin Twitter/X

Valuation Models ITC LTD

Discounted Cash Flow

2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Valuation(FCFE)

Assumptions/Forecasting
FCFE Growth Rate (1-5 Years) 20% FCFE Forecast 15,139 18,167 21,800 26,160 31,392 37,670 45,204 54,245 65,094 78,113
FCFE Growth Rate (6-10 Years) 20% Terminal Value 885,277
Terminal Growth Rate (10Year<) 2% PV of FCFE Forecast 13,639 14,744 15,940 17,232 18,629 20,140 21,773 23,538 25,447 27,510
Discount Rate/ Cost of capital 11% PV of Terminal Value 311,781
Avg FCFE of last 3 Year 12,616
Final Calculation
Current Market Value Total PV of FCFE Forecast 198,592
Price 443 PV Of Terminal Value 311,781
Adjusted Eq Shares 1,247 Total PV of Cash Flows 510,373
Market Cap 551,933
Enterprise Value (EV) 481,494 Compare Current Mcap DCF Value
Market Cap 551,933 510,373
Net Debt Price per share 443 409
Borrowings 306
Cash & Eq 4,880
Net Debt -4,574 Overvalued By 8%

Expected Return Model 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 CAGR 3YR CAGR 5YR CAGR 10YR

Forecast
% Growth rate in Net Profit (10YR) 12% Net Profit 8,991 9,766 9,501 10,477 11,493 12,836 15,593 13,383 15,503 19,477 13% 9% 17%
Discount Rate/Cost of Capital 12% Net Profit Margin 25% 25% 24% 24% 26% 27% 32% 27% 26% 27%
Net Profit after 10YR 60,492 Return on Equity ROE 33% 31% 22% 23% 22% 22% 24% 22% 25% 28%
Current P/E 28.3
Estimated Exit P/E after 10YR 20 Compare Current Mcap Model
Market Cap After after 10YR 1,209,835 Market Cap 551,933 389,534
Discounted value 389,534 Price per share 443 312
Current Market Cap 551,933
Overvalued By 42%

Residual Income Model 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Forecast Beg Book Value 62,456 69,155 72,554 76,464 80,959 86,129 92,074 98,911 106,774 115,816 126,214
% Growth Rate in Net Profit 15% Net Profit 19,477 22,398 25,758 29,622 34,065 39,175 45,051 51,808 59,580 68,517 78,794
Discount Rate/Cost of Equity 12% Dividend Paid 19,263 18,999 21,849 25,126 28,895 33,229 38,214 43,946 50,538 58,118 66,836
Persistence Factor 1 End Book Value 69,155 72,554 76,464 80,959 86,129 92,074 98,911 106,774 115,816 126,214 138,172
Average Div 5YR Payout 85% Equity Charge 7,495 8,299 8,707 9,176 9,715 10,335 11,049 11,869 12,813 13,898 15,146

Residual Income 11,982 14,100 17,051 20,446 24,350 28,839 34,002 39,939 46,767 54,619 63,649
Current Market Value Residual Income / Share 10 11 14 16 20 23 27 32 38 44 51
Number of shares 1,247 PV Of Residual Income 12,589 13,593 14,553 15,475 16,364 17,226 18,066 18,888 19,696 20,493
Face Value 1 Terminal Residual Income 530,404
Current Price 443
Mcap 551,933 Final Calculation
Cumulative PV 166,945
PV of Terminal Value 170,776
Beg Book Value 62,456
Value of the Company 400,176

Compare Current Mcap Forecasted

Market Cap 551,933 400,176
Price per share 443 321

Overvalued By 38%

Price Multiple 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM

Discount Rate/Cost of Equity 12%

No. of Shares 1,193 1,202 1,207 1,215 1,220 1,226 1,229 1,231 1,232 1,243 442.6
DSP 4.00 4.17 5.67 4.75 5.15 5.75 10.15 10.75 11.50 15.50
DPS Growth rate 4% 36% -16% 8% 12% 77% 6% 7% 35%
EPS 7.5 8.1 7.9 8.6 9.4 10.5 12.7 10.9 12.6 15.7 18.1
Dividend Payout
Stock Price 235 217 219 280 256 297 172 219 251 384 442.6 Mean Median Max Min
Trailing P/E 31.2 26.7 27.8 32.5 27.1 28.4 13.5 20.1 19.9 24.5 24.4 25.1 26.7 32.5 13.5
3YR Avg 28.6 29.0 29.1 29.3 23.0 20.7 17.9 21.5 22.9
5YR Avg 29.1 28.5 25.9 24.3 21.8 21.3 20.5
10YR Avg 25.2

Leading P/E 29.0 27.6 25.4 29.8 24.4 23.4 15.8 17.4 16.0 21.2 23.0 23.9 29.8 15.8
3YR Avg 27.3 27.6 26.5 25.9 21.2 18.9 16.4 18.2
5YR Avg 27.2 26.1 23.8 22.2 19.4 18.7
10YR Avg 23.0

PVGO 167.5 151.6 147.0 201.8 168.2 191.5 81.1 113.7 120.1 232.5 157.5 159.6 232.5 81.1
P/E attributed to PVGO 20.6 19.3 17.0 21.4 16.1 15.1 7.5 9.0 7.7 12.8
% PVGO in P/E 66% 72% 61% 66% 59% 53% 55% 45% 38% 52%

BVPS 22.83 26.39 35.36 38.21 43.03 48.24 53.10 49.03 50.68 55.64
P/B 10.30 8.23 6.19 7.34 5.94 6.16 3.23 4.46 4.95 6.89 6.4 6.2 10.3 3.2

Enterprise Value (EV) 284,115 269,078 270,209 343,459 314,719 368,539 218,334 273,606 313,538 481,494
EBIT 13,081 14,453 14,937 16,075 17,524 19,221 20,116 17,996 20,800 25,993
EV/EBIT 21.72 18.62 18.09 21.37 17.96 19.17 10.85 15.20 15.07 18.52 17.7 18.3 21.7 10.9

EBITDA 13079.9 14251.6 14531.5 15469.5 16520.6 18537.4 19343.5 17064.8 20623.2 25704.3
EV / EBITDA 21.72 18.88 18.59 22.20 19.05 19.88 11.29 16.03 15.20 18.73 18.2 18.8 22.2 11.3

EV / Sales 8.05 6.93 6.89 8.03 7.24 7.62 4.42 5.55 5.17 6.79 6.7 6.9 8.0 4.4
 Created by - Devesh Balkote For Feedback - Deveshbalkote710@gmail.com Linkedin Twitter/X

ITC LTD
Buffet-Valuation
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Current Data 10YR Projected company Data using historical earnings growth rate/current visibility
Price 442.6 Sales 70,919 81,557 93,790 107,859 124,038 142,644 164,040 188,646 216,943 249,484 286,907
EPS 18.12 EPS 18.12 20.84 23.97 27.56 31.70 36.45 41.92 48.21 55.44 63.76 73.32
DPS 15.5 DPS 15.5 20.63 23.73 27.29 31.38 36.09 41.50 47.73 54.89 63.12 72.59
BVPS 55.46
P/E 28.2 Calculation
Earnings Yield 3.54% Earning After 10YR 73.32 Compare Current Mcap Forecasted
Dividend Yield 3.50% Dividends paid over 10YR 418.94 Market Value 443 472
P/BV 7.98 Price per share 551,933 588,770
Cost of Equity/Cost of Capital 12% Projected Price after 10YR
1,466.40
(Avg Sustainable P/E*EPS)
Sales Total Gain Undervalued By 7%
1,885.34
Med Term Forecast 15% (Projected Price + Dividends)
Sales 10YR CAGR 8.06% Projected annual return using current EPS growth visibility 17.5%
Sales 5YR CAGR 10.06%
Sales 3YR CAGR 19.83% 10YR Projected Company data using sustainable growth rate based on current visibility
YoY Sales Growth 16.94% BVPS 55.46 58.08 58.08 58.08 58.08 58.09 58.09 58.09 58.09 58.09 58.09
Sales TTM Growth -1.84% EPS 18.12 0.14 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15
DPS 15.5 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14
EPS
Med Term forecast 15% Calculation Compare Current Mcap Forecasted
EPS 10YR CAGR 8.47% Earning After 10YR 0.15 Market Value 443 1
EPS 5YR CAGR 10.61% Dividends paid over 10YR 1.43 Price per share 551,933 1,166
EPS 3YR CAGR 20.06%
YoY EPS Growth 25.63% Projected Price after 10 YR
2.90
EPS TTM Growth 16% (Avg Sustainable P/E*EPS) Overvalued By 47227%
Total Gain
4.34
5YR Avg (Projected Price + Dividends)
Return On Equity (ROE) 24% Projected annual return using current sustainable growth visibility -40.2%
Payout Ratio 85%
Highest P/E Ratio 28.39
Lowest P/E Ratio 13.54
Avg P/E Ratio 25.15
Avg Sustainable P/E 20

SSGR 5YR Avg

ROE Forecast 25% 24%
Div Payout Forecaster 99% 85%
Sustainable Growth Rate 0.25% 3.67%
 Created by - Devesh Balkote For Feedback - Deveshbalkote710@gmail.com Linkedin Twitter/X

Price Implied Value

ITC LTD
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

Consensus Forecast 5YR Avg Input

Sales Growth Rate 11% 11% Sales 70,919 78,720 87,379 96,991 107,660 119,503 132,648 147,239 163,436 181,413 201,369 223,520 248,107 275,398 305,692 339,318
EBIT Margin 38% 38% EBIT 29,354 29,914 33,204 36,857 40,911 45,411 50,406 55,951 62,106 68,937 76,520 84,937 94,281 104,651 116,163 128,941
Tax Rate 26% 25% NOPAT 17,959 22,435 24,903 27,642 30,683 34,058 37,805 41,963 46,579 51,703 57,390 63,703 70,710 78,489 87,122 96,706
Inc Fixed Capital Rate 57.62% 40% Inc Fixed Capital Investment 3,120 3,464 3,845 4,268 4,737 5,258 5,837 6,479 7,191 7,982 8,860 9,835 10,917 12,118 13,450
Inc Working Capital Rate 24.55% 15% Inc Working Capital Investment 1,170 1,299 1,442 1,600 1,776 1,972 2,189 2,429 2,697 2,993 3,323 3,688 4,094 4,544 5,044
WACC 12% FCF 18,145 20,141 22,356 24,815 27,545 30,575 33,938 37,671 41,815 46,415 51,520 57,187 63,478 70,461 78,211
Inflation 8% PV of FCF 16,201 16,056 15,913 15,770 15,630 15,490 15,352 15,215 15,079 14,944 14,811 14,679 14,548 14,418 14,289
Cumulative PV of FCF 16,201 32,256 48,169 63,940 79,569 95,059 110,411 125,626 140,705 155,649 170,460 185,139 199,686 214,104 228,393
5YR Avg
Growth Rate Total Asset 8.71% Residual Value 605,751 672,384 746,346 828,444 919,573 1,020,726 1,133,006 1,257,637 1,395,977 1,549,534 1,719,983 1,909,181 2,119,191 2,352,302 2,611,055
Growth Rate Total Liability 5.16% PV of Residual Value 540,849 536,020 531,235 526,491 521,791 517,132 512,514 507,938 503,403 498,909 494,454 490,039 485,664 481,328 477,030
Non-Operative Assets/Total Asset 40%
Debt/Total Liability 1% Total Asset 85,831 93,309 101,439 110,277 119,885 130,330 141,685 154,029 167,449 182,039 197,899 215,141 233,886 254,263 276,416 300,499
Number of Shares 1,247 Total Liability 16,676 17,535 18,440 19,390 20,390 21,441 22,547 23,709 24,932 26,217 27,569 28,990 30,485 32,057 33,710 35,448
CMP 443
Forecasting Period 15 Corporate Value 557,050 568,277 579,404 590,431 601,360 612,191 622,926 633,564 644,108 654,558 664,914 675,178 685,350 695,431 705,423
+ Non-Operative Assets 37,056 40,284 43,794 47,610 51,758 56,267 61,170 66,499 72,293 78,592 85,439 92,883 100,976 109,773 119,337
- Debt 193 203 213 224 236 248 260 274 288 303 318 335 352 370 389
Current Value Forecasted Value Shareholder Value 593,913 608,359 622,985 637,817 652,882 668,211 683,835 699,790 716,113 732,847 750,035 767,726 785,973 804,834 824,371
Price 443 476 Shareholder Value / Share 476 488 500 511 524 536 548 561 574 588 601 616 630 645 661
Mcap 551,933 593,913
P/E 28 30 Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Sales 35,306 38,817 39,192 42,768 43,449 48,340 49,388 49,257 60,645 70,919
Incremental Sales 3,511 375 3,576 681 4,891 1,048 -130 11,387 10,274
Capex 2,993 740 3,110 3,645 2,875 3,104 3,986 1,890 3,290
Depreciation 1,028 1,077 1,153 1,236 1,397 1,645 1,646 1,732 1,809
Incremental Fixed Capital Investment 1,965 -337 1,957 2,409 1,478 1,459 2,340 158 1,481
Incremental Fixed Capital Investment Rate 56% -90% 55% 354% 30% 139% -1797% 1% 14%
5YR Avg 57.33% 65.90% 95.81% 43.88% 25.18%
9YR Avg 37.43%

Working Capital 6,263 9,078 15,688 11,913 11,957 14,110 15,548 12,757 14,824 15,851
Incremental Working Capital 2,815 6,610 -3,775 44 2,153 1,437 -2,791 2,067 1,027
Incremental Working Capital Rate 80% 1763% -106% 6% 44% 137% 2143% 18% 10%
5YR Avg 60.21% 61.20% -29.13% 16.28% 14.17%
9YR Avg 26.92%

Non-Operative Assets/Total Asset 26.38% 32.29% 34.48% 36.76% 38.84% 40.70% 46.49% 40.03% 38.21% 39.96%
5YR Avg 33.75% 36.61% 39.45% 40.56% 40.85% 41.08%
% Growth in Total Assets 12.49% 12.40% 8.22% 14.92% 11.67% 7.77% -4.59% 4.66% 11.19%
5YR Avg 11.94% 11.00% 7.60% 6.89% 6.14%

Debt/Total Liability 1.78% 1.89% 0.93% 0.48% 0.31% 0.11% 2.30% 2.02% 1.69% 1.84%
5YR Avg 1.08% 0.74% 0.83% 1.04% 1.29% 1.59%
% Growth in Total Liability 4% -37% 6% 24% 7% -4% 11% 10% 13%
5YR Avg 0.87% -0.91% 8.75% 9.59% 7.48%