What is the Full Form of ITC? – ITC Full Form

The ITC Full Form is Imperial Tobacco Company. It was set up  on 24^th August 1910 as Imperial Tobacco Company of India Limited. Its name was changed to India Tobacco Company Limited in 1970 and finally to ITC Limited in 1974. As of March 2021, the company’s net profit was Rs 13,032 crores. Its market capitalization is a whopping Rs 2,59,366 crores. It employs over 36,500 individuals in over 60 locations across India. It is also a member of the Forbes 2000.

Core Businesses

• Foods
• Personal Care
• Cigarettes and Cigars
• Branded Apparel
• Education & Stationery Products
• Incense Sticks and Safety Matches
• Hotels
• Paperboards and Packaging
• Agri-Business
• Information Technology is among the many domains that make up the conglomerate.

Key Personnel:

• Sanjiv Puri- Chairman & Managing Director
• Nakul Anand- Executive Director
• Sumant Bhargavan- Executive Director
• Rajiv Tandon- Executive Director
• Shilabhadra Banerjee- Independent Director
• Hemant Bhargava- Non-Executive Director
• Arun Duggal- Independent Director
• Sunil Behari Mathur- Independent Director
• Anand Nayak- Independent Director
• Nirupama Rao- Independent Director
• Ajit Kumar Seth- Independent Director
• Meera Shankar- Independent Director
• David Robert Simpson- Non-Executive Director

Subsidiaries:

ITC is a huge conglomerate. It has subsidiaries and different brands in various domains.

• ITC Hotels
• ITC Infotech India Ltd
• Sunrise Foods Pvt Ltd.
• ITC Paperboards and Specialty Papers Division
• Balan Natural Food Pvt. Ltd
• Park Hyatt Goa Resort and Spa
• Bay Islands Hotels Ltd
• Technico Agri Sciences Ltd
• Surya Nepal Pvt Ltd.
• Welcomhotels Lanka Ltd.
• Technico Pty Ltd
• Maharaja Heritage Resorts Ltd
• Gold Flake Corporation Ltd
• ITC- International Business Division
• North East Nutrients Private Ltd
• ITC Investments & Holdings Ltd
• ITC Filtrona Ltd
• ITC Foods Ltd
• Fortune Park Hotels Ltd
• BFIL Finance Ltd
• WelcomeHeritage
• Srinivasa Resorts Ltd

History of ITC Ltd.

1910: Imperial Tobacco Company was established in a leased office with a small capital of Rs 3.10 Lakhs. 1975: ITC entered into the hotel business with the acquisition of a hotel in Chennai which was renamed as ITC-Welcomgroup Hotel Chola 1979: ITC entered the Paperboards business. 1985: ITC set up Surya Tobacco Co. in Nepal. It was their first venture beyond national borders. 1990: ITC acquired Tribeni Tissues Limited. It is a specialised paper manufacturing company and also a major supplier of tissue paper to the cigarette industry. 2002: ITC launched a line of premium range notebooks under the brand Paperkraft. 2000: ITC also entered the Lifestyle Retailing business with the Wills Sport and manufactured relaxed wear for men and women. 2001: The company entered into branded packaged foods and introduced a wide range of products. 2002:  The company started supporting the small and cottage sector by introducing safety matches and incense sticks like Aim and Mangaldeep. 2005: ITC entered the Personal Care Business and introduced products like Essenza Di Wills, Fiama, Vivel and Superia. 2010: ITC launched its hand-rolled cigar named Armenteros in the Indian market.

Corporate Social Responsibility (CSR) 

1. ITC e-Choupal Ecosystem: Indian farmers face various challenges related to poor quality soil, climate change etc. With the ITC e-Choupal Ecosystem initiative, they have set up village internet kiosks (e-choupal). It helps farmers collect real-time and up-to-date information on weather, prices of goods and much more. 2. ITCs Afforestation Program: Many Indian farmers own lands which are not fertile enough to grow crops. So ITCs Afforestation Programme assists farmers to turn their infertile lands into fertile lands using clonal saplings. These saplings are specially developed by ITCs R&D team to grow in harsh conditions. 3. ITCs Women Economic Empowerment Program: Women from rural areas have limited education and skills and hence end up being dependent. ITCs Women’s Economic Empowerment Program provides these women with opportunities to become independent. They provide resources and training to set up a small business or form a small or micro-enterprise. 4. ITCs Primary Education Program: One of the major challenges that prevent children from progressing is lack of education. ITCs primary education programme helps poor and unprivileged children complete their schooling and inculcate skills and abilities for a better future.

Shareholding Pattern of ITC

	Jun-20	Sep-20	Dec-20	Mar-21
FIIs	14.60%	12.96%	13.31%	12.79%
DIIs	42.09%	43.54%	42.94%	42.50%
Public	43.31%	43.50%	43.75%	44.71%

Profit and Loss Statement of ITC Ltd. 

(Figures in Rs. Crores)

	Mar-17	Mar-18	Mar-19	Mar-20	TTM
Sales	42,768	43,449	48,340	49,388	49,257
Expenses	27,307	26,941	29,812	30,044	32,193
Operating Profit	15,461	16,508	18,528	19,344	17,065
OPM	36	38	38	39	35
Other Income	1,768	2,252	2,090	2,417	2,577
Interest	49	115	71	81	58
Depreciation	1,153	1,236	1,397	1,645	1,646
Profit before tax	16,026	17,409	19,150	20,035	17,938
Tax	35	34	33	22	25
Net Profit	10,289	11,271	12,592	15,306	13,161

Recommended Read: Learn to Analyse Income Statement of a Company 

Balance Sheet of ITC 

(Figures in Rs. Crores)

	Mar-17	Mar-18	Mar-19	Mar-20	Sep-20	Mar-21
Share Capital	1,215	1,220	1,226	1,229	1,230	1,231
Reserves	45,198	51,290	57,915	64,044	57,853	59,116
Borrowings	46	36	13	277	291	271
Other Liabilities	9,440	11,695	12,585	11,760	14,024	13,143
Total Liabilities	55,898	64,241	71,739	77,311	73,397	73,761
Fixed Assets	15,893	16,524	19,374	21,713	23,446	23,298
Cwip	3,730	5,508	4,136	3,256	3,515	4,011
Investments	17,581	22,053	25,043	28,663	24,271	24,871
Other Assets	18,694	20,156	23,185	23,678	22,166	21,580
Total Assets	55,898	64,241	71,739	77,311	73,397	73,761
Inventories	8,116	7,495	7,860	8,879	10,961	10,397
Trade Receivables	2,474	2,682	4,035	2,562	2,353	2,502
Cash & Bank	2,967	2,900	4,152	7,277	3,833	4,659
Loans and Advances	1,869	2,796	2,810	3,189	94	2,646
Trade Payables	2,659	3,496	3,510	3,630	4,274	4,319

*Data as on 7th September 2021 Recommended Read: How to Analyse a Balance Sheet of a Company

ITC’s Key Financial Ratios:

Market Cap (Cr): Rs 2,59,366	Face Value (₹): 1	EPS (₹): 11.32
Book Value (₹): 49	Roce (%): 28.6	Debt to Equity: 0.00
Stock P/E: 18.6	ROE (%): 21	Dividend Yield (%): 5.1
Revenue (Cr): Rs 49,494	Earnings (Cr): Rs 16,827	Cash (Cr): Rs 4,659
Total Debt (Cr): Rs 271	Promoter’s Holdings (%): 0

*Data as on 7th September 2021

Recommended Watch: Learn how you can make the most with dividend reinvestment strategy from ITC share.

Samco’s Ratings for ITC Ltd. 

4 out of 5 stars ✰✰✰✰

Mutual fund holdings and trends of ITC Ltd.

Schemes	Quantity	As on	Prev. Qty	Change (Qty)
Aditya Birla sun life arbitrage fund – growth	11,171	31-08-2021	6,893	4,278
Aditya Birla sun life balanced advantage fund – growth option	9,102	31-08-2021	8,829	273
ICICI prudential regular savings fund – growth	3,624	31-08-2021	1,568	2,056
Kotak debt hybrid fund – growth	1,360	31-08-2021	1,319	41
Parag Parikh conservative hybrid fund – regular plan growth	975	31-08-2021	817	158
India bulls blue chip fund – regular plan – growth option	317	31-08-2021	308	9
DSP regular savings fund – growth	292	31-08-2021	283	9
Tata retirement savings fund – conservative plan – growth	167	31-08-2021	162	5
India bulls tax savings fund – regular plan- growth option	133	31-08-2021	129	4
India bulls equity hybrid fund-regular plan – growth	89	31-08-2021	87	2

Valuation Analysis of ITC:

You can easily analyse if the stock is overvalued or undervalued using its margin of safety index.

• High margin of safety = Current share price < Intrinsic value of share
• Low margin of safety = Current share price > Intrinsic value of share

You can analyse the margin of safety of stock by visiting Samco’s share price page. ITC Ltd has a high margin of safety.  Take your first step towards investing by opening a FREE Demat account with Samco.