ITI - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 2.1

📊 Core Financials Analysis

Profitability

ROE of –14.7% and ROCE of –0.77% indicate severe inefficiency and value erosion.

EPS is –₹2.24, and quarterly losses have widened from ₹–48.9 Cr. to ₹–66.8 Cr. — a concerning trend.

No dividend yield and negative return metrics suggest poor shareholder value creation.

Leverage

Debt-to-equity ratio of 0.91 is high, especially for a loss-making company.

Financial distress risk increases if losses persist and debt servicing becomes strained.

Cash Flow

Likely negative or weak, given consistent losses and high debt.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio Not applicable Negative earnings — valuation unreliable

P/B Ratio ~17.8 Extremely high — unjustified by fundamentals

PEG Ratio Not available No meaningful growth to assess

Intrinsic Value Likely far below current price due to poor financial health

🏢 Business Model & Competitive Advantage

Sector: Telecom and electronics manufacturing — historically a PSU with legacy infrastructure.

Moat: Weak — lacks scale, innovation, and competitive edge compared to private players.

Challenges

Operational inefficiencies, outdated tech, and limited market share.

FII/DII holdings stagnant — no institutional conviction.

📉 Technical & Sentiment Indicators

RSI at 37.6 — approaching oversold zone.

MACD negative and price below 50-DMA and near 200-DMA — weak momentum.

Volume declining — low investor interest.

🎯 Entry Zone & Long-Term Guidance

Suggested Entry Zone: Only for speculative traders — ₹210–₹250 range (near 52-week low)

Long-Term View

Not recommended for long-term holding unless there's a major turnaround or strategic shift.

High-risk, low-visibility investment with poor fundamentals.

Monitor for government restructuring, JV announcements, or tech upgrades — otherwise, avoid.

Would you like a turnaround case study comparison with companies like BEL or BHEL to see what successful PSU revivals look like?

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