ITI Share Price Soars 20% to ₹457.10, Rallies 117% from ₹210 Since October!

ITI Ltd. shares surged 20% to ₹457.10 on January 3, 2025, marking an all-time high and a 117% rally since October 2024. The rise was driven by significant contract wins, including a ₹95 crore project and involvement in BharatNet Phase 3. The company also reported a 313% year-on-year revenue growth for Q2FY25.

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ITI stock surges 302% in two years

ITI stock soars 20%, fueled by contract wins

ITI Share Price Soars 20% to ₹457.10, Rallies 117% from ₹210 Since October!

ITI stock surges 302% in two years

ITI Share Price Soars 20% to ₹457.10, Rallies 117% Shares of ITI, a public sector company specializing in telecom equipment and accessories, rose by 15.33% to ₹527.35 on Friday’s intra-day trade, reaching a 52-week peak of ₹545.55. This surge comes despite a general market downturn and follows a 29% increase in the past week. Over the last two months, the stock has soared 92%, jumping from ₹220.

Its impressive performance over the past two years has resulted in a 302% rise from ₹105.10 in January 2023. ITI’s strong performance is fueled by key contracts, including its involvement in Bharat Net Phase II, the defense ministry’s Ascon project, and supplying smart energy meters and network infrastructure for spectrum, all contributing to a robust order book and healthy revenue prospects.

ITI Share Price Soars 20% to ₹457.10, Rallies 117% Shares of ITI Ltd. surged dramatically, posting its largest single-day gain in 9 months on January 3, 2025, rising 20% to reach ₹456.50 per share, driven by high trading volumes of nearly 9 crore shares. Since April 2024, the stock has skyrocketed by 70%. This surge has boosted the company’s market capitalization to ₹43,936.56 crore.

The rally followed ITI’s announcement of securing a ₹95 crore contract from the Directorate of Geology & Mining, Government of Uttarakhand, for a Mining Digital Transformation & Surveillance System (MDTSS) project aimed at modernizing mining operations in the state. This contract is expected to contribute significantly to ITI’s revenue and profitability.

In its latest Q2FY25 results, ITI reported a 312.31% year-on-year increase in net sales to ₹1,016.20 crore, a 44.19% reduction in net loss to ₹70.33 crore, and a 114.1% improvement in EBITDA, which reached ₹6.09 crore.

ITI Share Price Soars 20% to ₹457.10, Rallies 117% Shares of ITI Ltd. surged 19.99% on January 3, 2025, closing at an all-time high of ₹457.10 on the NSE, driven by a significant increase in trading volume, which reached 892.47 lakh shares. This spike in share price came as the stock’s total trade value hit ₹3,794.94 crore. Over the past week, the stock rose by 39.36%, climbed 59.02% in the past month, and increased by 48% over the last six months. It also saw a 17% rise year-to-date.

Earlier, the stock had hit a 52-week low of ₹210 per share on October 25, 2024. The market benchmarks, SENSEX and NIFTY, ended the day nearly 1% lower, while the BSE PSU index rose by 0.44%.

ITI Ltd. is a leading manufacturer and service provider of telecommunication equipment, as well as a prominent supplier of defense electronics products and systems. As of January 3, the company’s market capitalization stood at ₹43,922.14 crore.

ITI Share Price Soars 20% to ₹457.10, Rallies 117% As of January 6, 2025, ITI Ltd.’s share price has increased by 12.98%, reaching ₹516.45, reflecting a significant upward movement from the previous close of ₹457.10. The stock opened at ₹473.40, peaked at ₹520.65, and experienced strong trading activity, with over 26 million shares changing hands.

ITI has a market capitalization of approximately ₹49,668 crore and an enterprise value of ₹46,422 crore. Despite a P/E ratio of 0, indicating a lack of profitability per share, the company has reported an 8.90% profit growth, although sales have declined by 9.45%.

Recent developments have driven investor optimism, including speculation about potential growth and increased interest in the telecommunications sector, especially with the upcoming Union Budget, which may boost infrastructure investments, including railways.

Pros of Investing in ITI:

• Strong promoter holding at 90%, showing confidence from major stakeholders.
• Positive profit growth, indicating good management.
• Significant cash reserves of ₹832.42 crore, offering financial stability.
• Investments aligned with government initiatives, especially in telecommunications.
• Strong historical returns.

Cons:

• Recent share price volatility raises concerns about market sentiment.
• High P/B ratio of 28.62, suggesting possible overvaluation compared to peers.
• Declining sales growth may indicate challenges in revenue generation.
• Potential risks due to dependence on government policies.

Investment Recommendations: Experts suggest buying ITI shares due to strong fundamentals and positive outlook. The consensus target price is around ₹542.58, with some analysts setting higher targets of ₹524 (Geojit BNP Paribas) and ₹560 (Anand Rathi). Given the company’s growth potential and government initiatives, analysts recommend buying, though investors should consider using stop-loss strategies to manage risks.

In summary, ITI’s recent gains, strong fundamentals, and government-driven growth prospects make it an attractive buy, but monitoring the market and performance is crucial for managing potential risks.

ITI stock soars 20%, fueled by contract wins

ITI Share Price Soars 20% to ₹457.10, Rallies 117% Shares of ITI Ltd. surged by nearly 20% on January 3, 2025, reaching ₹457.10, marking an all-time high. This surge represents a remarkable 117% rally from the stock’s October low of ₹210. The rise was accompanied by significant trading volumes, with 35.35 lakh shares changing hands on the BSE and 8.26 crore shares traded on the NSE.

The stock’s ascent is largely driven by recent contract wins, including a ₹95 crore deal from the Directorate of Geology & Mining, Government of Uttarakhand, for a Mining Digital Transformation & Surveillance System (MDTSS) project. ITI will implement this system across 40 key check gates in the state. Additionally, the company was selected as the lowest bidder for three packages of the BharatNet Phase 3 project, valued at ₹4,559 crore, aimed at expanding India’s broadband infrastructure.

ITI’s impressive performance also follows a significant 313% year-on-year revenue growth for the quarter ending September 2024. The company plays a key role in developing India’s telecom infrastructure, offering products like optical fiber cables, 4G and 5G equipment, encryption solutions, and secure communication services for defense and strategic sectors. It is also expanding into emerging areas such as data centers, IoT, e-governance, and cybersecurity.

Founded in 1948, ITI operates across multiple manufacturing facilities and marketing centers in India, providing a wide range of ICT products and services.