ITC and Nestle India Ltd are 2 of the leading players in Indian fast moving consumer goods (FMCG) industry; top 5 players include:
- Hindustan Unilever Ltd
- ITC
- Nestle India Ltd
- Britannia Industries
- Dabur India Ltd
Read Cash Flow Analysis of Hindustan Unilever Ltd (Click to read) in our previous post.
Top 4 Basis of analyzing Cash Flows of ITC & Nestle India Ltd
(1) Cash Flows over years
Click to enlarge the image
![itc cash flow analysis over last 10 years](https://blog.pawealth.in/wp-content/uploads/2020/04/ITC-sources-of-cash-1.png)
![nestle india cash flow analysis over last 10 years](https://blog.pawealth.in/wp-content/uploads/2020/04/Nestle-India-sources-of-cash-1.png)
(2) Earning Quality of ITC & Nestle India
Click to enlarge the image
![ITC share analysis by comparing net profit and cash form operating activities](https://blog.pawealth.in/wp-content/uploads/2020/04/ITC-share-analysis-by-comparing-net-profit-and-cash-flow-from-operating-activities.png)
![nestle india share analysis by comparing cash flows with netprofit over last 10 years](https://blog.pawealth.in/wp-content/uploads/2020/04/Nestle-share-analysis-by-comparing-net-profit-and-cash-flow-from-operating-activities.png)
(3) Free Cash Flows
Click to enlarge the image
![ITC ltd share analysis with free cash flows over last 10 years](https://blog.pawealth.in/wp-content/uploads/2020/04/ITC-free-cash-flow-analysis.png)
![nestle india share analysis with free cash flows over last 10 years](https://blog.pawealth.in/wp-content/uploads/2020/04/Nestle-India-free-cash-flow-analysis.png)
(4) FCF/Sales
![ITC Ltd free cash flow analysis with net sales](https://blog.pawealth.in/wp-content/uploads/2020/04/ITC-free-cash-flow-analysis-with-net-sales.png)
![nestle india free cash flow analysis with net sales](https://blog.pawealth.in/wp-content/uploads/2020/04/Nestle-india-free-cash-flow-analysis-with-net-sales.png)
Note: Both the companies, ITC Ltd and Nestle India Ltd are part of NIFTY FMCG. Although, on the basis of businesses, both are not comparable as ITC's 60-65% of revenue is from cigarettes business.
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Disclaimer: The report only represents personal opinions and views of the author. Therefore, No part of the report should be considered as recommendation for buying/selling any stock. Also, the report & references mentioned are only for the information of the readers about the industry stated.
Thanks for updating. Please share for other industries and companies also.
The analysis of comparison on ITC and Nestle is just superb . Please share similar if you have for hind unliver visa vis ITC ! Thanks .
Thank you Mr Sandeep ! Sure, stay connected for our upcoming articles.