 "This PSU stock zoomed 43% in 2 days; market cap crosses Rs 50,000 crore")
Shares of ITI are continuing their upward movement; the company's stock price has rallied 19 per cent to hit a new high of Rs 422.45 on the BSE in Monday’s intra-day trade amid heavy volumes in an otherwise weak market. In two days, the stock of the public sector undertaking (PSU) company has surged 43 per cent. In comparison, the BSE Sensex was down 1.2 per cent at 78,264 at 12:20 PM. In two days, the benchmark index has lost 2 per cent.
A sharp rally in ITI share price was seen, with the market capitalisation (market cap) of ITI crossing the Rs 50,000-crore mark for the first time today. Currently, with a market cap of Rs 51,609 crore, ITI is trading 17 per cent higher at 535.15, the BSE data showed. The average trading volumes on the counter has jumped over two-fold. A combined 64.3 million equity shares, representing nearly 67 per cent of the total floating equity of ITI, have changed hands on the NSE and BSE.
Meanwhile, the stock price of ITI has soared 66 per cent in the past six days, while it has nearly doubled in six weeks from the level of Rs 273.70 that it hit on November 25, 2024. In two years, ITI share price has skyrocketed 431 per cent from Rs 102.65 on January 6, 2023.
In two months, the stock has appreciated by 135 per cent as the company reported improved financial performance and a healthy business outlook.
For the first half (April to September) of the financial year 2024-25 (H1FY25), ITI had reported a consolidated net loss of Rs 161.64 crore, as compared to a net loss of Rs 228.82 crore in H1FY24. The company posted a net loss of Rs 568.92 crore in the entire financial year 2023-24. ITI’s consolidated revenue from operations jumped nearly four-fold to Rs 1,536 crore in H1FY25 from Rs 403.51 crore in H1FY24.
ITI said the company's management is of the opinion that going concern basis of accounting is appropriate for the company, in view of the high value of existing order book of Rs 11,124.29 crore under execution with adequate margin, coupled with an additional order book of Rs 291.04 crore, and expected conversion of unbilled revenues of Rs 1,811.15 crore into billed revenue/realisation by completing the contract milestones within the next 12 months. Apart from that, a step-up in the recovery processes to collect the billed dues, adequate sanction of working capital borrowing from consortium banks along with continued support of the Government of India, are also positives for the company.
ITI, a leading telecom company and multi-unit central public sector undertaking, is a total solutions provider in the telecommunications segment. The company offers a complete range of telecom products covering the whole spectrum of switching, transmission, and access and subscriber premises equipment.
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Besides offering the latest telecom solutions and customised support to a variety of businesses, ITI has a dedicated Network System Unit (NSU) for carrying out installation and commissioning of equipment and for undertaking turnkey projects. ITI is focused on manufacturing of diversified products in defense and railway sectors and the manufacturing of solar equipment, NGN products, GPON, LED lighting systems, optical products, along with other allied products like HDPE, OFC, smart cards, encryptors for defense, and Wi-Fi, among others.
With a first-mover advantage, ITI has been one of the key contractors for the projects of BSNL, MTNL, Ministry of Defence, Ministry of Rural Development, etc., in the past few decades. Given its strategic importance, ITI has been involved in government projects, including Make in India, Digital India, and Smart City, among others.
ITI has won key projects, including BharatNet Phase II, the defence ministry’s Ascon project, the supply of smart energy meters, and network for spectrum, among others. ITI also has a preferred supplier status among its key customers. The company's revenue visibility remains healthy on the back of a strong order book.