Few days back, I shared my investment thesis for ITC.
Today, I want to share the detailed presentation.
Focus is on explaining & analyzing the ITC 'business' and not the divided opinions about its 'stock price'.
Thread 👇
@finbloggers @dmuthuk @FinMedium @ITCCorpCom
1/ Financial Performance
- Decent overall growth.
- Weak revenue growth in recent years.
- PAT growth > EBIT growth > revenue growth.
2/ Financial Position
- NCA have almost tripled.
- Equity has almost quadrupled.
- Negligible debt / insignificant liabilities.
3/ Cash Management
- CFO growth < PAT growth.
- CFO enough to cover both re-investments & dividend.
- Consistent re-investment & increasing shareholder payouts.
4/ Key Metrics
- ROCE/ROE near minimum but still healthy.
- Margins at decade highs.
- Asset utilizations at decade lows.
- Comfortable solvency, minimal leverage.
- Strong cash conversion.