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Today's prices ask more of Nestle India than of ITC.
At current prices, buyers of ITC are assuming about 0% growth against 8% in its own record; for Nestle India it is 34% against 0%. 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: ITC on estimate withheld; Nestle India on estimate withheld.
- Size: ITC is worth about 1.5 times Nestle India on the stock market.
- Record: Nestle India's filed history in the data used here is too short to compare year by year, so only ITC's record is summarised: revenue went from FY2018 to FY2026 at about 8% a year.
- What to watch: cigarette volumes and taxes at ITC; volume growth at Nestle India.
| ITC | Nestle India | |
|---|---|---|
| Price | ₹284 | ₹1,261 |
| Market cap | ₹3.56L Cr | ₹2.43L Cr |
| P/E | 18.9 | 59.6 |
| P/B | 4.91 | 47.15 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Estimate withheld | Estimate withheld |
01Two businesses
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.
Maggi, Nescafe and a Swiss parent
Nestle India, the Indian arm of Switzerland's Nestle, sells Maggi noodles, Nescafe coffee, KitKat and Munch chocolates, Milkmaid and Everyday dairy products, and infant foods such as Cerelac and Lactogen. The Swiss parent owns the majority of its shares.
02The records side by side
Nestle India's filed history in the data used here is too short to compare year by year, so only ITC's record is summarised: revenue went from FY2018 to FY2026 at about 8% a year.
Full ten-year tables and charts are on each company's page: ITC · Nestle India.
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
- 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.
- Volume growthPrice increases have driven much of recent growth; volumes need to follow.
- Commodity costsMilk, coffee, cocoa and wheat prices feed straight into margins.
05What could go wrong
- Tobacco taxationA large tax increase can cut legal cigarette volumes sharply.
- ESG pressureSome global investors avoid tobacco altogether, which can cap the multiple.
- The multipleA premium valuation leaves little room for slower growth.
- Food-safety scaresThe 2015 Maggi ban showed how quickly a single product issue can hit sales.
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 ITC or Nestle India 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, ITC trades at 18.9 times earnings and 4.91 times book value, and Nestle India at 59.6 times earnings and 47.15 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 ITC and Nestle India?
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. Nestle India, the Indian arm of Switzerland's Nestle, sells Maggi noodles, Nescafe coffee, KitKat and Munch chocolates, Milkmaid and Everyday dairy products, and infant foods such as Cerelac and Lactogen.
Are ITC and Nestle India valued the same way?
No. ITC is valued on estimate withheld and Nestle India on estimate withheld, because forcing one model onto both would misstate at least one of them.
What does today's price assume for ITC and Nestle India?
Worked backwards from the share price, ITC needs about 0% growth and Nestle India about 34% growth, against 8% and 0% in their own records.