We are talking about ITI. ITI Limited i.e. Indian Telephone Industries (NSE: ITI) is an electronic product manufacturing company of the Government of India.
The Government of India company was established in 1948. The government’s stake in the company is 90.28 percent.
In November, the share price increased from Rs 221 to Rs 333. Whereas, the all-time high level of the company’s share is Rs 384.
5- 50% rise in a day – On Monday, after a 10 percent rise on the BSE amid heavy volume in intraday trade, the price of ITI shares reached a 10-month high of Rs 335.
The increase in ITI shares was triggered when the company declared it was the bidder with the lowest price (L1) for an amount totaling Rs 4,559 crore, for three packages in the BharatNet Phase 3 project.
ITI shares are trading higher for the fifth consecutive day. During this period, the stock has jumped 51 percent.
As a comparison, the BSE Sensex gained less than 1 percent during this time.
At the end of the September 2024 quarter, it was reported that ITI was owned by the Government of India (GOI) and had a 90 percent stake in ITI.
What Is The Reason For This Increase?
ITI announced to markets on the 10th of November, 2018 that the company and its co-partner had been named the bidder with the lowest price (L1) on package no. 15 from the BharatNet Phase 3 project.
Which covers three states: Arunachal Pradesh, Nagaland, and Manipur with an order worth Rs 1,537 crore.
ITI Limited was announced as the bidder with the highest L1 (as of the 7th of November, 2024) to bid on package no. 8 within the State of Himachal Pradesh and package 9 from West Bengal and Andaman and Nicobar Islands with an order amount of Rs. 3,022 crore.
In this case, ITI is now the first bidder on the three packages (8,9 fifteen) and brings the total amount to 4,559 crore.
ITI produces telecom equipment and offers solutions for companies that provide telecom services, the Ministry of Defence, and other government agencies.
The product range of the company comprises GSM (Global System for Mobile Communications) and CDMA (Code-Division Multiple Access) products, defence products, as well as a host of other items.
With the benefit of being the first moving, ITI has been one of the principal contractors on projects of BSNL, MTNL, the Ministry of Defence, the Ministry of Rural Development, and others Over the past few decades.
ITI was involved in various government initiatives such as Make in India, Digital India, and Smart City.
In the reports of brokerage companies, the performance of the company is expected to improve over the next year with an impressive order book during the second quarter of the current year.
Meanwhile, last month, rating agency Acuite upgraded its long-term rating of ITI’s bank loan facilities with a ‘stable’ outlook.
Further, the company is expected to see a reduction in losses from FY22 to FY24 and benefit from a large order book of Rs 11,227.32 crore as of June 30, 2024, in the next few quarters.
Quick Fact
| Company name | ITI |
|---|---|
| Full name | Indian Telephone Industries |
| Established | 1948 |
| Government stake | 90.28% |
| Recent price rise | 51% |
| Highest price rise | 50% in one day |
| 10-month high | ₹335 |
| All-time high price | ₹384 |
| L1 bidder packages | 3 packages in BharatNet Phase 3 |
| Total order value | ₹4,559 crore |
| Package locations | Arunachal Pradesh, Nagaland, Manipur, Himachal Pradesh, West Bengal, Andaman and Nicobar Islands |
| Order in package 15 | ₹1,537 crore |
| Order in packages 8,9 | ₹3,022 crore |
| Products | Telecom equipment, GSM/CDMA, defense items |
| Clients | BSNL, MTNL, Ministry of Defence, other government agencies |
| Initiatives | Make in India, Digital India, Smart City |
| Order book value | ₹11,227.32 crore (June 30, 2024) |
| Rating upgrade | ‘Stable’ outlook from Acuite |
| Loss reduction | FY22 to FY24 |
| Expected improvement | Over next year |
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