fmcg
ITC Limited
ITC · Nifty 50
₹290.75
Price 2026-06-17
At a Glance
Fundamental
85/100
STRONG
Trust
95/100
Verification
Coverage
89/100
HIGH
Quick Take
ITC Limited scores 85/100 on fundamentals (strong). ITC Limited: PE below historical average. BROAD EXPANSION regime.
Fundamental Score: 85/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 28.3% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 28.27% is strong efficiency-driven and stable. Net margin of 26.0% × asset turnover of 0.84x × leverage of 1.3x.
What This Means
Net margin of 26.0% means the company keeps ₹26.0 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.84x means the company efficiently uses its assets to generate revenue. Leverage of 1.3x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
58.4%
Operating
35.4%
Net
26.0%
Gross margin 58.4% → operating margin 35.4% → net margin 26.0%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
WEAKCash flow only covers 0.9x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
COMFORTABLEInterest covered 329.7x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.1x is low — balance sheet has capacity.
Free Cash Flow
STRONGFCF margin at 20.6% — strong cash generation. Business is self-funding.
Peer Comparison
ITC Limited is compared against 10 peers in the fmcg sector.
Key Watchpoints
Breaks above ₹305 (+5%)
Trend reversal confirmation
Breaks below ₹276 (-5%)
Further downside risk
PE reverts to 5Y median of 17.3
Valuation normalization
Fmcg sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
High refinancing risk. Company needs to roll over debt frequently. Vulnerable to credit market freezes.
Elevated risk score. Review audit, board, and shareholder rights metrics.
Profits are from core operations, not one-offs. High quality.
⚠️ 1 critical + 2 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes