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Check Before You Invest : ITI Ltd

BSE: 523610 NSE: ITI ISIN: INE248A01017
  |   Sector:  Telecom   |   Industry:  Telecommunication - Equipment

Snapshot

Q.1 Which industry/sub-sector does ITI Ltd belong to?
ITI Ltd belongs to the Telecom sector, operating specifically within the Telecommunication - Equipment segment.
Q.2 Is ITI Ltd a good quality company?
ITI Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is ITI Ltd undervalued or overvalued?
ITI Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - -
Price to Book 19.49 15.59
Price to Sales 11.08 8.99
EV to EBITDA 467.06 32.87
Q.4 Is ITI Ltd a good buy now?
ITI Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of ITI Ltd?
ITI Ltd revenue growth is 186.2% for FY-2025, which is above its 5-year CAGR of 11.93%, indicating faster growth.

Q.2 Gross Profit margin of ITI Ltd?
ITI Ltd Gross profit margin which is the profit after deduction of direct costs, is -5.5% for FY-2025, which is in line with its 5-year median of -5.5%, indicating stable margins.

Q.3 Operating Profit Margin of ITI Ltd?
ITI Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -1.69% for FY-2025, which is in line with its 5-year median of -1.69% indicating stable margins.

Q.4 Net Profit Margin of ITI Ltd?
ITI Ltd Net Profit Margin is -5.94% for FY-2025, is in line with its 5-year median of -5.94%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -5.5 -5.5
Operating Profit Margin (%) -1.69 -1.69
Net Profit Margin (%) -5.94 -5.94

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of ITI Ltd?
ITI Ltd Return on Asset is -2.15%, which is in line with its 5-year historical median of -2.15%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of ITI Ltd?
ITI Ltd Return on capital employed is 0.28% for FY-2025, which is in line with its 5-year historical median of 0.28%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.7 Return on Equity (ROE) of ITI Ltd?
ITI Ltd Return on equity is -12.83% for FY-2025, which is in line with its 5-year historical median of -12.83%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of ITI Ltd?
ITI Ltd Cash conversion cycle is 111 days, below its 5-year historical median of 191 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.36 0.2
ROE (%) -12.83 -12.83
ROCE (%) 0.28 0.28
Cash Conversion Cycle 111 days 191 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of ITI Ltd?
ITI Ltd Debt-to-Equity ratio is 0.95, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of ITI Ltd?
ITI Ltd Debt to cash flow from operations is -10.94, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of ITI Ltd?

Q.1 Promoter shareholding and pledge status of ITI Ltd?
Promoters hold 90.02% of the ITI Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does ITI Ltd performance compare with that of its Peers?

Q.1 Revenue growth of ITI Ltd vs industry peers?
ITI Ltd revenue CAGR is 11.93%, compared to the industry median CAGR of 12.15%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 186.2 12.2
Gross Profit Growth (%) 0 42.5
Operating Profit Growth (%) 0 20.6
Net Profit Growth (%) 0 65.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.36 0.59
ROE (%) -12.83 0.03
ROCE (%) 0.28 1.33
Cash Conversion Cycle (days) 110.94 115

Valuation & price assessment

Q.1 Stock return of ITI Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 27.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
27.8% 20.3% 42.2% 24.2%
Q.2 Valuation ratios of ITI Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings - - 31.57
Price to Book 19.49 15.59 2.63
Price to Sales 11.08 8.99 6.09
EV to EBITDA 467.06 32.87 14.85

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