A conglomerate with dominating ~80-85% market share in cigarette business the cashflows of which are funding growth in FMCG, hotels, paper packaging and agri-processing businesses.
Growth in the cigarette business, which contributes more than 85% of the company’s EBIT, has been challenged in past few years as government levied excessive indirect duties. Despite this impediment and seeding other businesses, ITC’s free cash flows have grown at 18% CAGR over last 10 years.
FMCG business has now grown sales to almost INR 12,500 crores and is at a phase when EBITDA growth will start contributing to the overall company’s EBIDTA. Valuations, as mentioned below are at a sharp discount when compared to other FMCG players, offering value.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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