ITI shares zoom 13% amid heavy volumes; gains for 2nd consecutive session

ITI Ltd shares zoomed 12.5 per cent in Monday's trade and logged an intraday high at Rs 361.45 per share amid heavy volumes. Around 11:22 AM, ITI share price was up 9.84 per cent at Rs 352.85  per share. In comparison, BSE Sensex was down 0.01 per cent at 81,697.06. On BSE 2.021 million equity shares and on NSE 43.367 million shares changed hands. The market capitalisation of the company stood at Rs 33,904.90 crore. The 52-week high of the company was at Rs 384.35 per share and the 52-week low was at Rs 210.2 per share.  On Friday, the stock had gained over 18 per cent, logging a day's high at Rs 339.75 per share. However, the counter closed at Rs 321.25 per share. 

 

ITI Limited is a public sector undertaking, established in 1948. It is under the Ministry of Communications, Government of India. ITI Limited primarily focuses on telecommunications equipment and services and has played a significant role in building India's telecommunications infrastructure over the decades.

 

The company manufactures a wide range of telecom products, including optical fiber cables, telecom transmission equipment, encryption solutions, and smart cards. It also contributes to the production of 4G and 5G network equipment. It provides secure communication solutions to defense and strategic sectors, leveraging its expertise in encryption and secure communication.

 

The company is also involved in data centers, IoT (Internet of Things), e-governance projects, and cybersecurity solutions.

 

Meanwhile, India’s mobile sector revenue was up 8 per cent quarter on quarter (Q-o-Q (14 per cent year on year Y-o-Y) to an annualised Rs 2.69 trillion, according to data collated by the Telecom Regulatory Authority of India (Trai).

 

Industry revenue has doubled since September 2019 on three rounds of tariff hikes. The average revenue per user (Arpu) has almost doubled from Rs 98 in September 2019 to Rs 193 in September 2024. The subscriber base of 1.15 billion in September 2024 is lower than in September 2019 (1.17 billion). 

 

Adjusting for growth in M2M and IoT SIMs, the decline in the human subscriber base is higher. Quarterly telecom revenue has almost doubled (up 96 per cent) since Sep 2019, implying a 14 per cent five-year revenue compound annual growth rate (CAGR).

 

In the past one year, ITI shares have gained 7.4 per cent against Sensex's rise of 17 per cent.