⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ITI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | ITI | Market Cap | 25,571 Cr. | Current Price | 265 ₹ | High / Low | 373 ₹ |
| Book Value | 15.1 ₹ | Dividend Yield | 0.00 % | ROCE | -1.33 % | ROE | -16.2 % |
| Face Value | 10.0 ₹ | DMA 50 | 279 ₹ | DMA 200 | 297 ₹ | Chg in FII Hold | 0.00 % |
| Chg in DII Hold | 0.00 % | PAT Qtr | -21.0 Cr. | PAT Prev Qtr | -52.5 Cr. | RSI | 46.8 |
| MACD | -6.01 | Volume | 79,32,826 | Avg Vol 1Wk | 2,91,12,862 | Low price | 233 ₹ |
| High price | 373 ₹ | Debt to equity | 0.90 | 52w Index | 23.2 % | Qtr Profit Var | 68.7 % |
| EPS | -1.54 ₹ | Industry PE | 50.0 |
📊 Financial Overview
- Revenue & Profitability: PAT improved from -₹52.5 Cr. to -₹21 Cr. (QoQ), but remains negative, showing continued losses.
- Margins: ROE at -16.2% and ROCE at -1.33% are weak, reflecting poor profitability and capital efficiency.
- Debt: Debt-to-equity ratio of 0.90 indicates moderate leverage, manageable but risky given losses.
- Cash Flow: EPS of -₹1.54 highlights negative earnings, limiting shareholder value.
💹 Valuation Metrics
- P/E Ratio: Not applicable due to negative earnings.
- P/B Ratio: Price ₹265 vs Book Value ₹15.1 → trading at a steep premium, showing speculative investor sentiment.
- PEG Ratio: Not available, limiting growth-adjusted valuation analysis.
- Intrinsic Value: Fundamentals do not justify current valuation; stock appears speculative.
🏢 Business Model & Competitive Advantage
- ITI Ltd. operates in telecom and defense equipment manufacturing.
- Competitive advantage lies in government contracts and legacy presence, but weak profitability undermines sustainability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹230–250 range looks safer given speculative valuation and weak fundamentals.
- Long-Term Holding: Risky for conservative investors. Suitable only for speculative positions; monitor profitability turnaround closely.
✅ Positive
- Quarterly losses reduced (from -₹52.5 Cr. to -₹21 Cr.).
- Moderate debt-to-equity ratio (0.90).
- Government backing provides some operational stability.
⚠️ Limitation
- Negative ROE (-16.2%) and ROCE (-1.33%).
- EPS of -₹1.54 indicates continued losses.
- High P/B ratio shows speculative premium despite weak fundamentals.
📉 Company Negative News
- Consistent losses with negative profitability metrics.
- Stock trading below DMA 50 & DMA 200, indicating bearish trend.
📈 Company Positive News
- Quarterly losses narrowed significantly (68.7% improvement).
- Stable technical indicators with RSI at 46.8 (neutral zone).
🏦 Industry
- Industry PE at 50.0 highlights sector trades at higher multiples, but ITI cannot be compared due to negative earnings.
- Telecom and defense manufacturing sector growth supported by government initiatives and modernization programs.
🔎 Conclusion
- ITI Ltd. remains speculative with negative profitability and weak fundamentals despite reduced losses.
- Entry around ₹230–250 is safer for speculative investors.
- Not ideal for long-term conservative holding; monitor earnings turnaround and government contracts closely.