ITI surges 11% on heavy volumes; up 29% in 1 week, zoomed 92% in 2 months

In two years, the stock price of ITI has skyrocketed 302 per cent from Rs 105.10 on January 3, 2023, on improved financial performance and a healthy business outlook

Shares of ITI hit a new high of Rs 422.45, as they rallied 11 per cent on the BSE in Friday’s intra-day trade amid heavy volumes in an otherwise weak market. In one week, the stock of the public sector undertaking (PSU) company has surged 29 per cent. 

 

In two months, the market price of the telecom equipment and accessories maker has zoomed 92 per cent from the level of Rs 220 on the BSE. In two years, ITI share price has skyrocketed 302 per cent from Rs 105.10 on January 3, 2023, on improved financial performance and a healthy business outlook.

 

 

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.

 

Regarding the volume of shares traded /share price, the company said, it is not responsible for any increase or fall in the volume or share price of the company's stock, or any changes in stock market conditions; they are purely based on market conditions, ITI had said on December 13, 2024, on clarification being sought by the exchanges on price movement of the company’s shares.

 

“We wish to confirm that as on date there are no matters/ events which are pending for disclosures to the Stock Exchanges that may have a bearing on the price / volume behaviour in the Company’s scrip,” ITI said.

 

At 12:06 PM, ITI shares were trading 10 per cent higher at Rs 420.75, as compared to the 0.42 per cent decline in the BSE Sensex. The average trading volumes on the counter had jumped over two-fold. A combined 37.76 million equity shares, representing 39 per cent of the total floating equity of ITI, have changed hands on the NSE and BSE. 

 

As on September 30, 2024, the government of India held a 90 per cent stake in ITI. The remaining 10 per cent, or 96 million shares, are held by public shareholders, data showed. Of these, Special National Investment Fund held 7.90 per cent holding, while retail shareholders held 1.94 per cent stake in ITI, shareholding pattern data from the exchanges showed.

 

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.

 

On November 10, 2024, ITI, with its consortium partner, has emerged as the Lowest Bidder (L1) for Package Nos. 8, 9, and 15 of BharatNet Phase-3 Project comprising Arunachal Pradesh, Nagaland, Manipur, Himachal Pradesh, West Bengal, and Andaman & Nicobar Islands, with a total order value of Rs 4,559 crore.

 

The BharatNet Phase-3 Project is divided into 16 Packages spread across all states and union territories. BSNL had invited tenders for the design, supply, construction, installation, upgradation, operation and maintenance of Middle Mile Network of BharatNet Phase-3 Project on a design, build, operate and Maintain (DBOM) model.

 

Recently, ITI won an order worth Rs 300 crore from the Bihar Renewable Energy Development Authority (BREDA) for the supply and installation of 100,000 solar street light systems, for the Bihar state government.

 

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.

 

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.

 

ITI is currently under a revival plan after it was referred to the Board for Industrial and Financial Reconstruction (BIFR) and declared a sick company. Under the Rehabilitation Scheme approved by the Cabinet Committee on Economic Affairs (CCEA) for the revival of ITI sanctioned upon the company being declared as a Sick Company as per the provisions of Sick Industrial Companies Act (SICA), 1985, a financial assistance of Rs 4,156.79 crore was sanctioned in February 2014. As on November 14, 2024, the company has received Rs 3,025.35 crore from the package.

 

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.