This public sector co's stock soared 43% in 3 days; zoomed 84% in 5 weeks

ITI shares hit a new high of Rs 403.75, with a combined 60.72 million equity shares representing 6.32 per cent of the total equity of the company, changed hands on the NSE and BSE till 01:37 PM

ITI share price hit a new high of Rs 403.75, as they surged 9 per cent on the BSE in Tuesday’s intra-day trade, extending their past two days' rally amid heavy volumes on a healthy outlook. In three days, the stock of the public sector undertaking (PSU) company has soared 43 per cent. It surpassed its previous high of Rs 384.35 that it touched on January 17, 2024. 

 

At 01:37 PM, ITI shares were trading 6 per cent higher at Rs 392.15, as compared to the 0.27 per cent decline in the BSE Sensex. The average trading volumes on the counter had jumped nearly three-fold. A combined 60.72 million equity shares, representing 6.32 per cent of total equity of ITI, have changed hands on the NSE and BSE. In 16 months, the stock price of ITI has zoomed 240 per cent from Rs 118.6 on August 10, 2023.

 

 

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.

 

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.

 

According to analysts, despite a deterioration in the company's scale of operations and increase in losses on a year-on-year basis from FY22 to FY24, an improvement in the scale of operations and reduction in losses had been witnessed in H1FY25; it is further expected to improve in the coming quarters and financial years on account of a healthy order book position, providing revenue visibility in the near- to medium-term.

 

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, 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.

 

On outlook, ITI in its FY24 annual report filed on October 10, 2024, said that it has undertaken many initiatives/ projects so as to boost its turnover and implement the revival plan. ITI’s order book position stands at Rs 11,871.25 crore, the company said.

 

SD-WAN (Software Defined Wide Area Network) Solution, the software-defined wide area network market is poised to record a compound annual growth rate (CAGR) of 31.6 per cent from 2022 to 2032. The SD-WAN market is likely to touch $53.8 billion by 2032 from $3.4 billion in 2022. The increased demand for mobility services, as well as the rising emphasis of enterprises on lowering OPEX with SD-WAN, are expected to foster the software-defined wide area network (SD-WAN) market growth to a considerable extent, the company said.

 

ITI is in the process of selecting a suitable partner for the manufacturing of SD-WAN products and solutions. The partner will assist ITI in setting up the production lines design, apart from manufacturing and testing the SD-WAN solutions for customers.

 

In five weeks, ITI stock has soared 84 per cent after the company announced that it has emerged as the lowest bidder (L1) for three packages of BharatNet phase-3 project worth a total of Rs 4,559 crore. ITI, on November 10, informed the stock exchanges that the company, with its consortium partner, has emerged as the L1 for Package number 15 of BharatNet Phase-3 project comprising Arunachal Pradesh, Nagaland, and Manipur states, with an order value of Rs 1,537 crore.

 

ITI also emerged as the L1 bidder (on November 7, 2024) for package No. 8 in the state of Himachal Pradesh, and for Package No. 9 in West Bengal, and Andaman and Nicobar Islands with an order value of Rs 3,022 crore. With this, ITI has emerged as the L1 bidder for three packages (8, 9 and15), taking the total order value to Rs 4,559 crore.

 

The BharatNet Phase-3 Project is divided into 16 packages, spread across all states and union territories. Public sector telecom company BSNL had invited tenders for the design, supply, construction, installation, upgradation, operation and maintenance of the Middle Mile Network of BharatNet in 16 Packages/Circles.

 

The BharatNet Phase-3 project is envisaged to develop (creation, upgradation and operation and maintenance) the middle mile network of BharatNet on design, build, operate and maintain (DBOM) model.

 

Apart from that, recently ITI won an order worth Rs 300 crore from Bihar Renewable Energy Development Authority (BREDA) for the supply and installation of 100,000 numbers of Solar Street Light Systems to Bihar State Government, the company said.