ITC Limited (ITC.NS) stock analysis

In our weekly check, ITC Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 5, red flags: 2.

About ITC Limited

ITC Limited is a Consumer Defensive company (Tobacco) based in India, listed on NSE as ITC.NS.

What our checks show for ITC.NS

Red flags

• The gross margin fell by 4.9 points, to 50.5%: costs are rising faster than prices.
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.

Warning signs

• Analysts expect only about 4.3% a year of growth in revenue.
• Margins expected to shrink
• Revenue grew only 2.5% a year over the last 3 years.
• The stock has fallen as much as 57% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 2.4 years.

Strengths

• Debt is low: 0x equity.
• Operating profit covers interest 221 times over.
• The company keeps 26% of its revenue as net profit.
• Free cash flow is 21.3% of revenue: cash for dividends, buybacks or growth.
• The dividend takes 50% of profit: there is a cushion.
• A large company: market value $35.03 billion.

Next earnings report: 2026-11-02

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Questions

What grade does ITC Limited (ITC.NS) have?

In our weekly check, ITC Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 5, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of ITC.NS stock?

This week's biggest flags for ITC Limited: Gross margin falling, Low return on capital, Weak revenue forecast. In total 7 of 25 checks show a warning or a red flag.

What does ITC Limited do?

ITC Limited is a Consumer Defensive company (Tobacco) based in India, listed on NSE as ITC.NS.

When does ITC Limited report earnings next?

The next earnings report is expected on 2026-11-02. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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