ITC Limited Stock Information
I.T.C. Limited is an Indian enterprise headquartered in Kolkata, West Bengal. It is considered to be one of the most valuable companies in the country and has a product portfolio comprising Fast Moving Consumer Goods (FMCG), Paperboard and Specialty Papers, Agri-Business, Packaging, Hotels, and Information Technology.ITC Limited Market Capitalisation
The total market cap of ITC, as of February 2018, is more than Rs.3,27,000 crore.
Company’s Wealth and Recent PerformanceQ1 FY 2018-19
- For the quarter ended on June 30, 2018, Yes Bank Limited reported its total income to be at Rs.8,272.18 crore. With respect to the total income declared for the same period last year, this marks an increase of a little over Rs.2,000 crore.
- Considering the net interest income, it grew by 22.7% y-o-y to Rs.2,219 crore whereas non-interest income recorded a growth of 49.6% y-o-y.
- Owing to this significant growth in income, the company’s net profit also registered a healthy growth of 30.5% y-o-y to Rs.1,260.4 crore. Advances for the quarter also grew by 53% y-o-y across all operating segments like business, retail, corporate, and MSME.
- Provisions and contingencies for the period were reported to be at Rs.625.7 crore as against Rs.285.7 crore reported for the same period, last year.
- Considering the asset quality of the bank, its Gross Non-Performing Assets (GNPA) stood at 1.31% whereas Net NPA stood at 0.59%. The total assets book witnessed a steady decline in the quarter.
- For the year ended on March 31, 2018, Yes Bank Limited disclosed its net interest income to be at Rs.7,737.1 crore - an increase of 33.5% y-o-y. Its non-interest income also registered a healthy growth of 25.7% y-o-y to Rs.5,223.8 crore.
- Driven by an impressive performance, the company’s net profit grew by 26.9% with respect to the profit stated for the previous fiscal year. The net profit after tax for the FY18 was reported to be Rs.4,224.6 crore.
- Considering the advances for the year, they grew by 53.9% y-o-y across corporate, retail, and MSME segments.
- Over the course of the fiscal year, the bank’s asset quality has also registered a decent improvement. Its Gross NPA improved from 1.72% to 1.28% q-o-q while Net NPA improved from 0.93% to 0.64% sequentially.
- For the year ended, the consolidated basic earnings per share was stated to be Rs.18.46 as against an EPS of Rs.15.82 reported for the previous fiscal year. The return on equity (RoE) for the year stood at 17.7%. The board also recommended a dividend of Rs.2.7 per share.
- In the recently released report for the third quarter of the financial year 2017-18, Yes Bank reported a healthy increase in advances and balance sheet. The respective numbers, as of the end of the third quarter are more than Rs.1.5 lakh crore and Rs.2.5 lakh crore.
- Net Interest Income has also grown remarkably over the last quarter, with the amount standing at Rs.1,888.8 crore - a year-over-year increase of more than 25%. Consequently, Yes Bank’s profit after tax also grew to Rs.1,077 crore during the same term in contrast to Rs.882.6 crore in Q3 FY17.
- The CASA (Current and Savings Account) ratio of Yes Bank for the Q3 FY18 is 38% which, on a long-term basis, translates into a y-o-y growth of 48%.
- Furthermore, the asset quality of the bank continued to be resilient to harsh conditions. Gross NPA (Non-Performing Asset) was recorded to be at 1.72% whereas Net NPA was 0.93% for the same quarter.
- On January 2, 2018, the opening stock price of Yes Bank Limited was Rs.313.40 on the National Stock Exchange. Over the course of January, the scrip appreciated by roughly 15% to cross the Rs.360 mark. However, the turbulence in the international markets soon plagued this scrip and consequently, the shares started a bearish trend towards the end of the month.
- Through the course of February and March, the shares lost more than 30% and they descended into the Rs.200 region. In the final week of March, the shares hit their 52-week low at Rs.285 on the NSE. The closing price on March 30 was Rs.304.85.
- In April, the share price of Yes Bank Limited recovered and the stocks recuperated their previous losses. The scrip ascended back to its previous levels at Rs.350, although they failed to find a steady heading at those levels. Through most of May and June, the shares were seen trading hands at levels varying from Rs.330 - Rs.340. In June, the company declared a final dividend of 135%.
- It wasn’t until July that the prices soared once again to touch the Rs.380 mark. The scrip gained a little over 17% in two weeks. However, throughout the second half of July and most of August, the shares were volatile. Nonetheless, they maintained their bearings at levels above Rs.350.
- In the final week of August, however, the shares plunged sharply and lost a little over 10%. The closing price at the end of the month was Rs.343.50.
ITC Limited Stock Returns in 2016 and 2017
- ITC share price at the start of 2016 was close to Rs.200 on NSE and BSE. This was roughly the case for the first month of the year as a decent Q3 FY16 performance kept the ITC stock price from tumbling.
- Things did not change dramatically in the month of February as well, when the company announced that it will be allocating shares under the ESOP option. The share price did go below Rs.200 for a short while owing to the expected hike in excise duty. Nonetheless, the stock price recovered quickly on the back of updates. Through March and most of April 2016, the share price hovered around Rs.210.
- In May, ITC shares were being traded around Rs.230 owing to a good performance in the Q4 FY16. A dividend of 850% was also announced by the company.
- Through June and July, the stock price of ITC inched closer to Rs.250. This was possible owing to the bonus shares announced by the conglomerate in 2:1 ratio, the company’s plan to set up 9 plants, and a good Q1 FY17 performance.
- This steady heading was observed through August and September as well, when the stock price didn’t suffer massively. The shares of the BSE SENSEX listed company were lingering Rs.255, owing to regular updates and the release of Q2 FY17 report.
- In November 2016, ITC share price went down after the company announced the cessation of its subsidiary. The closing price of the stock at the end of the year was Rs.241.
- 2017 began with the change in the directorate of the company, followed by the announcement of Q3 FY17 results. These events, coupled with the budget announcement and the appointment of Sanjiv Puri as the CEO led to the stock price hit a new 52-week high. Furthermore, the government’s decision to sell 2% stake in ITC propelled the stock price to touch Rs.290.
- Through March and April, ITC stocks were changing hands for roughly Rs.270-280. In May, stocks received a boost owing to GST and a solid Q4 performance, which eventually led the price to hit a fresh 52-week high. By mid-June, ITC share price was hovering above Rs.300.
- By early July, the stock price had touched Rs.330. However, this rally didn’t last for long as the share price suffered massively owing to the hike in cess on cigarettes. This shook the tobacco industry but ITC was quick to recover from it. The allotment of ESOP/ESPS along with regular updates kept the share price close to Rs.270 for most of August and September.
- The last few months of the year did not suffer any major setbacks. For most of the time, shares were being traded at around Rs.260. ITC stock closing price at the end of the year was Rs.263.25.
Should you invest in ITC?
- I.T.C. Limited is a company built on strong foundations. It is fundamentally sound and has generated profits regularly over the years, as seen in their previous financial statements. The company’s debt is negligible and has delivered good returns on equity over the years. Moreover, ITC is one of the leading FMCG marketers in India, making it a preferred choice in this category.
- ITC is a leading player in India’s tobacco industry. The market share of the Indian Tobacco Company is more than 70%, making it the market leader in cigarettes. The recent hike in cess (and the subsequent hike in price) did put the tobacco industry in India under pressure. However, owing to a never-ending demand for cigarettes in the country, ITC is more than likely to recover from this cess hike and continue to deliver consistent growth in the tobacco segment.
- ITC is also focussed on expanding its FMCG portfolio, with this segment set to see an investment of Rs.10,000 crore in the next 5-7 years. Furthermore, ITC Hotels is also constantly improving, as seen in the numbers for the last quarter. This means that revenue from non-tobacco segments is increasing, although cigarettes still account for a major portion of the profit made by the company. Nonetheless, as these segments grow, we may see this proportion of profits alter over the years, in the favour FMCG products and hotel business.
- Investing in ITC stocks is a good idea, especially if the idea is to stay invested for a long time. Given that the stock is trading around Rs.270 as of February 2018, the entry price appears to be favourable. Alternately, one can also look into mutual funds houses with I.T.C. Limited holdings.
I.T.C. Limited, also known as Indian Tobacco Company, is one of the largest corporations in India that primarily operates in five segments - information technology, agri-business, paperboards & packaging, FMCG, and lastly, hotels. The company’s vision is to become India’s most valuable conglomerate driven by world-class performance. I.T.C. Limited currently employs more than 30,000 across 60 locations in India. To list a few of its brands, there is Aashirvaad, Sunfeast, Fiama Di Wills, Engage, Vivel, Classmate, PaperKraft, Wills Lifestyle, et cetera.
History of the Company
ITC was established in August 1910, as Imperial Tobacco Company of India Limited. In its early years, mainly the first few decades, the company was solely focussed on tobacco products. It was during this time that the ownership of the company ‘Indianised’ and as a result, it was renamed to Indian Tobacco Company in 1970 and subsequently to I.T.C. Limited in 1974.
It was in the seventies that the company decided to expand its business portfolio and pursue other ventures. ITC took its first step towards diversification in 1975, when it purchased a hotel in Chennai. In more than 40 years since that memorable purchase, ITC Hotels has grown to become second largest hotel chain in the country.
In 1979, the company entered the Paperboards business and in 1990, it established the Agri-Business division with the sole purpose of exporting agricultural commodities. In 2000, ITC transformed its information technology operations into a wholly owned subsidiary known as ITC Infotech India Limited. Over the years, ITC also pursued other avenues like retail lifestyle, information technology, education and stationery products, and fast moving consumer goods, all of which have proven to be profitable with a massive room for growth in the future.
Sanjiv Puri, Chief Executive Officer & Executive Director
Mr. Puri has been serving as the CEO of I.T.C. Limited since February 2017 and he is also the Chairman of the Corporate Management Committee. Prior to his appointment as the CEO, he served as a Director on the Board of the company and also as the Chief Operating Officer since late July 2016. Before joining the Board, he was the President of FMCG business at ITC.
Mr. Puri has been with the company since 1986 during which time, he supervised operations pertaining to FMCG, Paperboards, Agri-Business, and Paper & Packaging. He has also held several business leadership positions in manufacturing and operations divisions, and has also served as the Managing Director of ITC Infotech India Limited, from May 2006 to August 2009.
Yogesh Chander Deveshwar - Chairman
An alumnus of the IIT Delhi, and Harvard Business School, Mr. Deveshwar joined ITC in 1968. He became a Board in April 1984 after which, he became the Chief Executive and Chairman of the Board in 1996.
During his long tenure, he oversaw many important operations as the Chief Executive Officer. It was under his leadership that ITC became a conglomerate in a true sense of the word. His vision was to transform ITC into a corporation that contributes significantly to the Indian economy. He is also responsible for crafting and shaping the organisational strategies which enable ITC to manage all its businesses efficiently, while maintaining individual focus on each one of them. His efforts were recognised when the Harvard Business Review ranked him as the 7th Best Performing CEO in the world. Mr. Deveshwar is presently serving as the Chairman in non-executive capacity.
ITC Limited Listing and Indices
ITC stocks can be bought and sold on any of the three stock exchanges - National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and Calcutta Stock Exchange.
As mentioned earlier, ITC is a part of the benchmark market indices in India - S&P BSE SENSEX and NIFTY 50. In addition to these two indices, I.T.C. Limited is also a part of NIFTY 200, NIFTY 500, S&P BSE India Manufacturing, S&P BSE SENSEX 50, and many more.
37, J.L. Nehru Road,
Kolkata - 700071
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