On this page ▾
Today's prices ask more of Britannia than of ITC.
At current prices, buyers of Britannia are assuming about 10% growth against 7% in its own record; for ITC it is 0% against 8%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: Britannia on discounted cash flow; ITC on estimate withheld.
- Size: ITC is worth about 3.1 times Britannia on the stock market.
- Record: On revenue the two have grown at much the same pace: Britannia compounded at about 8% a year (FY2018–FY2026) and ITC at about 8% (FY2018–FY2026).
- What to watch: volume growth at Britannia; cigarette volumes and taxes at ITC.
| Britannia | ITC | |
|---|---|---|
| Price | ₹4,750 | ₹285 |
| Market cap | ₹1.14L Cr | ₹3.57L Cr |
| P/E | 42.9 | 18.9 |
| P/B | 22.41 | 4.93 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Estimate withheld |
01Two businesses
India's biscuit maker
Britannia Industries, founded in Kolkata in 1892 and controlled by the Wadia group, is one of India's largest food companies. Good Day, Marie Gold, NutriChoice, Tiger, Bourbon and 50-50 make it a leader in biscuits.
Cigarettes pay for everything else
ITC is India's largest cigarette company, with brands such as Gold Flake, Classic and Navy Cut, and the cigarette business still earns most of its operating profit. Over two decades it has used that cash to build a packaged-foods and personal-care business — Aashirvaad, Sunfeast, Bingo!, Yippee!, Classmate, Savlon — along with paperboard and packaging mills and an agri-business that sources and exports crops.
02The records side by side
On revenue the two have grown at much the same pace: Britannia compounded at about 8% a year (FY2018–FY2026) and ITC at about 8% (FY2018–FY2026). By revenue, ITC is about 4.7 times the size of Britannia. Britannia kept 13.2% of revenue as net profit in FY2026; ITC kept 23.4% of revenue as net profit in FY2026 — a sign of very different business models.
Full ten-year tables and charts are on each company's page: Britannia · ITC.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Volume growthRural reach and premium biscuits drive sales.
- Commodity costsWheat, sugar, milk and palm oil feed straight into margins.
- Cigarette volumes and taxesCigarettes are most of the profit. Tax changes decide how much volume is lost to smuggled and illegal cigarettes.
- FMCG marginsThe foods and personal-care business is large but earns thin margins; lifting them is the main source of new value.
05What could go wrong
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is Britannia or ITC better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Britannia trades at 42.9 times earnings and 22.41 times book value, and ITC at 18.9 times earnings and 4.93 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between Britannia and ITC?
Britannia Industries, founded in Kolkata in 1892 and controlled by the Wadia group, is one of India's largest food companies. ITC is India's largest cigarette company, with brands such as Gold Flake, Classic and Navy Cut, and the cigarette business still earns most of its operating profit.
Are Britannia and ITC valued the same way?
No. Britannia is valued on discounted cash flow and ITC on estimate withheld, because forcing one model onto both would misstate at least one of them.
What does today's price assume for Britannia and ITC?
Worked backwards from the share price, Britannia needs about 10% growth and ITC about 0% growth, against 7% and 8% in their own records.