ITC's Business Valuations
Business Segment Valuations per share
Cigratte ₹264.51
FMCG ₹89.16
Hotel ₹11.18
Paper ₹11.05
Agri ₹6.65
Other ₹2.58
Total ₹385.11
CMP ₹484.80
Hotel Business Demerger Structure Valuation of Other Hotel companies
ITC to Hold 40% Stake Indian Hotels
Public Shareholders to Hold 60% Stake EIH
Hotel Business ITC EBIT
Current ROCE 8% ITC VALUATION
Expected ROCE- Debt Free 18-20% EV/EBIT
ROCE for ITC LTD Will Improve
Hotel companies
EV EBIT EV/EBIT
57,708 1388 41.57636888
13,219 571 23.15061296
557 Crores
13925 ₹11.18 Per share
25X
ITC's Cigarette Business
EV EBIT EV/EBIT
Godfrey Phillips 10,880 750 14.51
VST Industries 5,692 429 13.27
ITC EBIT 18,833
ITC VALUATION 329,578 ₹264.51 Per share
EV/EBIT 17.5x
ITC's Cigarette Business
FY-18 FY-19 FY-20 FY-21 FY-22
Revnue 24,848 22,913 23,679 22,557 26,158
Revenue Growth -7.79% 3.34% -4.74% 15.96%
EBIT 14,128 15,412 15,838 13,498 15,768
EBIT Margins 56.86% 67.26% 66.89% 59.84% 60.28%
Godfrey Phillips Cigrette Business
FY-18 FY-19 FY-20 FY-21 FY-22
Revnue 2,591 2,316 2,700 2,642 2,873
Revenue Growth -10.61% 16.58% -2.15% 8.74%
EBIT 223 396 550 473 558
EBIT Margins 8.61% 17.10% 20.37% 17.90% 19.42%
Valuations
Enterprise Value 11,093
Sales from Tea division 427
0.5x P/S for tea Business 214
Valuations for cigratte divisio 10,880
EBIT 750
EV/EBIT 14.51
VST Industries
FY-18 FY-19 FY-20 FY-21 FY-22
Revnue 948 1,099 1,239 1,111 1,178
Revenue Growth 15.93% 12.74% -10.33% 6.03%
EBIT 279 351 420 417 428
EBIT Margins 29.43% 31.94% 33.90% 37.53% 36.33%
Valuations
Enterprise Value 5,692
EBIT 429
EV/EBIT 13.27
FY-23
31,267
19.53%
18,833
60.23%
FY-23
3,831
33.34%
750
19.58%
FY-23
1,292
9.68%
429
33.20%
ITC's FMCG Business
EV Sales EV/Sales
Emami 19,760 3,406 5.80
HUL 603,816 60,580 9.97
ITC Sales 19,153
ITC VALUATION 111,087 ₹89.16 Per share
EV/Sales 5.8
ITC's FMCG Business
FY-18 FY-19 FY-20 FY-21 FY-22
Revnue 11,357 12,535 12,875 14,757 16,023
Revenue Growth 10.37% 2.71% 14.62% 8.58%
EBIT 170 396 425 838 935
EBIT Margins 1.50% 3.16% 3.30% 5.68% 5.84%
Emami Business
FY-18 FY-19 FY-20 FY-21 FY-22
Revnue 2,531 2,695 2,655 2,881 3,192
Revenue Growth 6.48% -1.48% 8.51% 10.79%
EBIT 427 424 395 582 693
EBIT Margins 16.87% 15.73% 14.88% 20.20% 21.71%
Valuations
Enterprise Value 19,760
Revenue 3,406
EV/ Sales 5.80
HUL Business
FY-18 FY-19 FY-20 FY-21 FY-22
Revnue 35,545 39,310 39,783 47,028 52,446
Revenue Growth 10.59% 1.20% 18.21% 11.52%
EBIT 7,332 8,637 9,283 10,722 11,985
EBIT Margins 20.63% 21.97% 23.33% 22.80% 22.85%
Valuations
Enterprise Value 603,816
Revenue 60,580
EV/ Sales 9.97
FY-23
19,153
19.53%
1,386
7.24%
FY-23
3,406
6.70%
677
19.88%
FY-23
60,580
15.51%
13,458
22.22%
ITC's Paper Business
EV EBIT EV/EBIT
JK Paper 8,226 1,868 4.40
ITC EBIT 2,294
ITC VALUATION 13,764 ₹11.05 Per share
EV/EBIT 6x
ITC's Paper Business
FY-18 FY-19 FY-20 FY-21 FY-22
Revnue 5,250 5,860 6,107 5,619 7,642
Revenue Growth 11.62% 4.22% -7.99% 36.00%
EBIT 1,042 1,239 1,305 1,099 1,700
EBIT Margins 19.85% 21.14% 21.37% 19.56% 22.25%
JK Paper Business
FY-18 FY-19 FY-20 FY-21 FY-22
Revnue 2,844 3,257 3,060 2,751 3,969
Revenue Growth 14.52% -6.05% -10.10% 44.27%
EBIT 518 790 825 499 929
EBIT Margins 18.21% 24.26% 26.96% 18.14% 23.41%
Valuations
Enterprise Value 8,226
EBIT 1,868
EV/ EBIT 4.40
FY-23
9,081
18.83%
2,294
25.26%
FY-23
6,437
62.18%
1,868
29.02%
ITC's Agri Business
Agri Business
ITC EBIT 1,380
ITC VALUATION 8,280 ₹6.65 Per share
EV/EBIT 6x
ITC's Agri Business
FY-23
Revnue 18,443
EBIT 1,380
EBIT Margins 7.48%
ITC's Other Business
Other Business
ITC EBIT 535
ITC VALUATION 3,210 ₹2.58 Per share
EV/EBIT 6x
ITC's Other Business
FY-23
Revnue 3,263
EBIT 535
EBIT Margins 16.40%
