Author: Prashant Marathe | Date: 22 May 2025
Category: FMCG, Tobacco, ITC Ltd, Quarterly Results, Dividend Stocks
📌 At a Glance
ITC made ₹5,638 Cr in Q3.
Its trailing 12-month profit = ₹20,654 Cr
EPS = ₹16.36
CMP = ₹435
Market reaction = bhai kya hi excitement hai life mein
Basically, ITC’s stock is the overachieving middle child of the market. Makes money, causes no drama — and gets zero attention.
🧾 Q3 FY25 Financial Results (Standalone)
| 📅 Quarter | 💰 Total Income | 🧾 Net Profit | 🧮 EPS (₹) |
|---|---|---|---|
| Dec 2024 | ₹19,376.86 Cr | ₹5,638.25 Cr | ₹4.34 |
| Sep 2024 | ₹21,415.97 Cr | ₹5,078.34 Cr | ₹4.06 |
| Jun 2024 | ₹18,921.01 Cr | ₹4,917.45 Cr | ₹3.94 |
| Mar 2024 | ₹18,551.46 Cr | ₹5,020.20 Cr | ₹4.02 |
| TTM | ₹78,265.30 Cr | ₹20,654.24 Cr | ₹16.36 |
🚬 Segment Breakdown: Cigarettes Still Puffing Profits
| 🏭 Segment | 🏦 Revenue (Q3) | 💹 EBIT (Q3) |
|---|---|---|
| Cigarettes (FMCG-A) | ₹8,136.29 Cr | ₹4,924.04 Cr |
| FMCG (Others) | ₹5,418.18 Cr | ₹317.11 Cr |
| Agri Business | ₹3,350.81 Cr | ₹412.45 Cr |
| Paper & Packaging | ₹2,144.45 Cr | ₹205.48 Cr |
| Hotels, Others | ₹44.64 Cr | ₹18.15 Cr |
🧠 Translation?
Cigarettes = 44% of sales, 75% of profits.
The rest is basically garnish to make annual reports look ESG-friendly.
🧮 Fair Value Calculation
Let’s do what the market should’ve done but didn’t — basic maths.
- TTM EPS = ₹16.36
- CMP = ₹435
- Current P/E = 26.6x
| Scenario | Target P/E | Estimated FV |
|---|---|---|
| Conservative (No FMCG rerating) | 22x | ₹360 |
| Base Case (Stable biz, Dividends) | 27x | ₹442 |
| Bull Case (FMCG rerates, Hotels unlock value) | 30x | ₹491 |
Verdict: The stock is trading close to fair value. It isn’t cheap anymore — but not overvalued either. It’s just… there.
💸 Dividends: The Only Thing That Moves ITC Investors
| 🧾 Dividend Yield (TTM) | ₹15/share (incl. specials) |
|---|---|
| 💰 Yield @ CMP ₹435 | ~3.4% |
That’s higher than most FDs, with way better tax efficiency (for now).
So basically, ITC is now the fixed deposit of the equity world, except your uncle can’t withdraw it early.
😴 Why is ITC So Boring?
- It delivers consistently but with zero excitement
- It’s not launching the next EV, not making drones, not doing AI
- No scandal, no Twitter drama, no Adani feud, no M&A gossip
It’s like the IIT topper who became a PSU officer — stable, respected, rich… but not cool.
🚩 Risks
- Cigarette biz = regulatory ticking time bomb 💣
- FMCG “Others” has low margins – despite revenue growth
- Hotel demerger still pending – could unlock value but market’s tired of waiting
- Taxation changes – if GST Council feels frisky, it could hit volumes
🧠 EduInvesting Take
ITC is the kind of stock your dad told you to buy in 2004… and he was right.
It has quietly compounded wealth, paid solid dividends, and still gets roasted for being “boring.”
But if being boring makes you ₹20,000 Cr a year — we call that a flex.
“When in doubt, puff on profits. Not the stock.”
📦 Whether you hold or not, remember:
You can ignore ITC. But ITC doesn’t care. It’s still richer than 90% of listed companies.
🏁 Final Verdict
Buy for dividends. Hold for peace. Ignore for FOMO.
But don’t say it’s dead — it’s just resting between cigarettes.
Tags: ITC Ltd, ITC Share Price ₹435, ITC FY25 Results, ITC Q3 Profit, ITC Cigarette Business, Dividend Stocks India, FMCG India 2025, EduInvesting Roast, Long-Term Stocks
