Decoding the ITC Universe

  Introduction: Setting the Scene for Our Selection In the dynamic tapestry of Indian corporations, selecting a beacon for in-depth financial analysis is both challenging and crucial. Our journey led us to ITC, a company that not only stands tall in the Indian market but also exhibits a remarkable trajectory of value creation. Here, we unveil the rationale and methodology behind our strategic choice of ITC. 1. Methodology: Blending Quantitative Rigor with Qualitative Insight Our selection process was a blend of quantitative robustness and qualitative depth. Utilizing the Bloomberg terminal's EQS function, we meticulously screened various companies based on predefined criteria. Quantitative Analysis: Key Metrics: We analyzed traditional and VBM metrics such as ROE, dividend payout, EVA, MVA, FGV, and TSR. Financial Performance: ITC's financials showed a notable improvement in NOPAT, EVA, ROIC, and Net Income. Market Data: Utilizing Bloomberg functions like WACC, EVA Spread, a...

ITC, one of India's leading diversified conglomerates, has witnessed remarkable financial growth in 2023 compared to 2022. This blog delves into a comprehensive analysis of ITC's financial performance, highlighting key metrics and their implications.   Key Financial Highlights   NOPAT (Net Operating Profit After Tax) Increase : ITC's NOPAT witnessed a significant 28.6% surge from 2022 to 2023, indicating enhanced operational efficiency and profitability.   EVA (Economic Value Added) Growth : EVA, a measure of a company's true economic profit, experienced a substantial 53.3% increase, demonstrating ITC's ability to generate superior value for its shareholders.   EVA Spread Improvement : EVA Spread, a measure of EVA efficiency, rose by 4.27%, suggesting that ITC is effectively utilizing its resources to generate EVA.   ROIC (Return on Invested Capital) Enhancement : ROIC, a measure of a company's profitability relative to its investments, improved by 1...