ITI Stock Soars 92% in 2 Months, Hits Record High of ₹422.45 Amid Heavy Trading!

ITI stock surged 11% to reach a record high of ₹422.45, climbing 29% in just one week and 92% over the past two months. This growth is driven by strong financial performance, key project wins, and a healthy order book. The company’s stock has risen 302% in two years, reflecting its improving outlook and strategic importance in government projects.

CONTENTS:

ITI Share Price Surges Over 12%, Reaches Record High

ITI Shares Reach Record High, Surge 18% in Two Days: Analysts Share Insights

ITI Stock Surges 11% Amid High Volumes; Climbs 29% in One Week and 92% in Two Months

ITI Stock Soars 92% in 2 Months, Hits Record High of ₹422.45 Amid Heavy Trading!

ITI Share Price Surges Over 12%, Reaches Record High

ITI Stock Soars 92% in 2 Months ITI Ltd’s stock soared by over 12%, hitting an all-time high of ₹432.45 on January 3, 2025. As of 12:53 PM, the shares were trading at ₹427.55 on the Bombay Stock Exchange (BSE), reflecting a 12.20% gain.

The company’s stock has delivered an impressive 37% return over the past year, outperforming key benchmark indices. Recent performance includes a 30% rise over the past five trading sessions and a 49% gain in the last month.

Technical Analysis:

Initially, analysts suggested profit booking as the stock approached a key resistance zone. However, it has now surpassed this zone, suggesting further upward momentum. ITI’s stock remains technically robust, trading above all major simple moving averages (5-day, 10-day, 20-day, 50-day, 100-day, and 200-day). Its 14-day Relative Strength Index (RSI) stands at 66.27, indicating the stock is nearing overbought territory.

Mixed Fundamentals:

While the technical outlook is strong, the fundamentals tell a different story. ITI’s price-to-equity (P/E) ratio is negative at 74, and its price-to-book (P/B) value exceeds 24. Earnings per share (EPS) are negative at (-)5.22, and return on equity (RoE) stands at (-)31.60, highlighting profitability challenges.

ITI Ltd, a central public sector undertaking under the Ministry of Communication, has a 90% government stake.

ITI Shares Reach Record High, Surge 18% in Two Days: Analysts Share Insights

ITI Stock Soars 92% in 2 Months State-owned ITI Ltd’s stock continued its upward momentum for the second straight session, climbing 9.35% to reach a record high of ₹413.95 on Tuesday before settling 1.97% higher at ₹386. Over the past two trading days, the stock has risen by 17.68%.

Market Performance

The stock experienced a significant trading volume of 29.18 lakh shares on the BSE, surpassing the two-week average of 4.13 lakh shares. This activity translated to a turnover of ₹114.07 crore, with ITI’s market capitalization reaching ₹37,090.24 crore.

Technical Analysis

The stock is trading above its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs). Its 14-day Relative Strength Index (RSI) stands at 66.27, indicating that the stock is approaching overbought territory.

Key Levels to Watch:

• Immediate support: ₹360
• Intermediate support: ₹335
• Critical resistance zone: ₹380–₹390
• Potential breakout level: ₹415

Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi, advised profit booking in the ₹380–₹390 range while monitoring for a breakout above ₹415. He noted that a confirmed breakout could drive the stock toward ₹425.

Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One, echoed similar views, emphasizing the importance of ₹415 as a decisive breakout point and highlighting ₹360 as a key support level.

Fundamental Indicators

Despite its strong technical performance, ITI faces fundamental challenges:

• Negative Price-to-Earnings (P/E) ratio: 73.95
• High Price-to-Book (P/B) value: 23.35
• Negative Earnings per Share (EPS): (-)5.22
• Negative Return on Equity (RoE): (-)31.60

Company Overview

ITI Ltd is a central public sector undertaking under the Ministry of Communication, with a 90% government stake.

ITI Stock Surges 11% Amid High Volumes; Climbs 29% in One Week and 92% in Two Months

ITI Stock Soars 92% in 2 Months Shares of ITI Ltd soared 11% in Friday’s intra-day trade on the BSE, reaching a new high of ₹422.45 amid strong trading volumes, even as the broader market saw a decline. Over the past week, the state-run telecom company’s stock has risen 29%, and it has skyrocketed 92% in just two months, climbing from ₹220.

Long-Term Growth and Performance

In the past two years, ITI’s stock price has surged by an astonishing 302%, up from ₹105.10 on January 3, 2023. This remarkable growth is attributed to the company’s improved financial performance and strong business prospects.

Financial Highlights

• H1FY25: Consolidated revenue from operations increased nearly fourfold to ₹1,536 crore compared to ₹403.51 crore in H1FY24.
• Net Loss: Reduced to ₹161.64 crore in H1FY25 from ₹228.82 crore in H1FY24. The company reported a net loss of ₹568.92 crore for the full fiscal year 2023-24.

Key Projects and Achievements

• ITI recently won major contracts, including:
  • BharatNet Phase-3: As the lowest bidder (L1) for three packages worth ₹4,559 crore, covering regions such as Arunachal Pradesh, Nagaland, Manipur, Himachal Pradesh, West Bengal, and Andaman & Nicobar Islands.
  • Solar Street Lighting: Secured a ₹300 crore order from the Bihar Renewable Energy Development Authority (BREDA) for installing 100,000 solar street light systems.
• Other initiatives include manufacturing solar equipment, telecom products, and defense solutions.

Market Activity

By 12:06 PM on Friday, ITI shares were trading 10% higher at ₹420.75, significantly outperforming the 0.42% decline in the BSE Sensex. Trading volumes on the NSE and BSE surged, with 37.76 million shares (39% of ITI’s total floating equity) exchanging hands.

Strategic Importance

ITI is a central public sector undertaking under the Ministry of Communication, with the government owning a 90% stake. The company plays a vital role in major government projects like Make in India, Digital India, and Smart City initiatives.

Revival and Future Outlook

ITI is undergoing a revival plan after being declared a sick company under the Sick Industrial Companies Act (SICA) in 2014. The Cabinet Committee on Economic Affairs (CCEA) approved a financial assistance package of ₹4,156.79 crore, of which ₹3,025.35 crore has been disbursed.

With its involvement in critical government projects and a diversified product portfolio, ITI is well-positioned for sustained growth despite challenges.