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ITI Ltd Stock Analysis

Mid Cap
Evaluated by 731 users | BSE: 523610 | NSE: ITI |
Telecommunication - Equipment

ITI Limited is a public sector undertaking in the telecommunications technology segment established as a departmental factory in 1948. The company has a diverse suite of products including manufactured products like Gigabit Passive Optical Network (GPON),...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
ITI Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 00000016.38%13.07%5.78%7.46%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 0000001,5281,4751,6682,059
Y-o-Y Gr. Rt.-NANANANANANA-3.5%13.1%23.4%
Adjusted EPS (Rs.) 0000004.763.031.031.63
Y-o-Y Gr. Rt.-NANANANANANA-36.3%-66%58.3%
Book Value per Share (Rs.) 000000-22.3-10.67-6.20.42
Adjusted Net Profit 00000026623192.5151
Net Op. Cash Flow (Rs. Cr.) 000000-347-11323.8-199
Debt to Cash Flow from Ops 000000-3.39-10.952.81-6.12
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
ITI Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales NANA10.5%23.4%
Adjusted EPS NANA-30%58.3%
Book Value per Share 0000
Share Price 22.2% 36.2% 3.4% 45%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 00000024.2216.685.297.16
Operating Profit Margin (%) 000000-6.885.52-6.027.26
Net Profit Margin (%) 00000017.4315.635.557.31
Debt to Equity 000000-0.94-1.51-2.2631.33
Working Capital Days 0000000818854749
Cash Conversion Cycle 0000000129216128
Entity Percentage Holding
Promoters 90.09%
Institutions 7.76%
Non-Institutions 2.14%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of ITI Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that ITI Ltd is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of ITI Ltd's performance infers:

ITI Ltd earnings have grown by 0%, whereas share price has appreciated 36.2% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of ITI Ltd share prices over the last 10 years. Here is what we found out:

ITI Ltd share price has appreciated 14% annually over the past ten years.

ITI Limited is a public sector undertaking in the telecommunications technology segment established as a departmental factory in 1948. The company has a diverse suite of products including manufactured products like Gigabit Passive Optical Network (GPON), Managed Leased Line Network (MLLN) products, Stand Alone Signaling Transfer Point(SSTP), Wi-Fi Access Point, Radio Modem, SMPS, Set Top Box, Defence products like multi-capacity encryption units, Bulk

ITI Limited is a public sector undertaking in the telecommunications technology segment established as a departmental factory in 1948. The company has a diverse suite of products including manufactured products like Gigabit Passive Optical Network (GPON), Managed Leased Line Network (MLLN) products, Stand Alone Signaling Transfer Point(SSTP), Wi-Fi Access Point, Radio Modem, SMPS, Set Top Box, Defence products like multi-capacity encryption units, Bulk encryption Units (BEU), Terminal End Secrecy Devices (TESD), Passive infrastructure products such as Optical Fiber Cable, HDPE duct, Antenna, diversified products such as smart energy meters, smart cards, solar panels, mini personal computers.

Besides offering the telecom turnkey solutions and customized support, ITI has a dedicated Network System Unit for executing turnkey projects for installation and commissioning of telecommunication networks. The company intends to upgrade and invest in the technology, through the acquisition of technology from strategic partners with a specific focus on high growth industry segments. The company operates a data center at Bengaluru and currently expanding the same to offer cloud based services to government institutions/departments, banks etc.

The company is manufacturing a diverse range of Information and Communication Technology (ICT) products/solutions to hone its competitive edge in the convergence market by deploying its rich telecom expertise and vast infrastructure. Company is diversifying towards IOT, Smart city, other allied telecom products and services including turnkey project execution to offer solutions in diversified fields. Encryption Products are the company's forte. Extensive in-house R&D work is devoted towards design and development of encryption solutions to Indian Defence forces.

Business area of the company

The company is primarily engaged in the business of manufacture, sale and servicing of telecommunication equipments and rendering other associated / ancillary services.

Products and services offered by the company

Products

  • Smart energy meters
  • GPON OLT and ONT
  • PCM multiplexers
  • Electronic push button telephones
  • Ruggedized telephones for defence forces
  • Smart cards and banking cards
  • Hand held terminals for smart card authentication
  • Set top boxes, Wi-Fi equipment
  • Multiple types of encryption devices for defence
  • Solar power module
  • Switched mode power supply system
  • Internet of things (IOT) products
  • Radio modems
  • AN Rack hardware
  • Mini personal computers
  • Bank automation products
  • Optical Fiber Cable
  • HDPE pipe

Traded Products

  • Optical transport network products, like, DWDM
  • Managed leased line network (MLLN) products
  • Signalling Transfer Point (STP) network products
  • IP/MPLS routers and switches
  • Network management system solution
  • Microwave and satellite communication equipment
  • Next generation network equipment
  • IT products and solutions

Services

  • Installation, Commissioning and Maintenance services for Telecom and other supplied equipment
  • Contract manufacturing services
  • Component screening services
  • Data Centre hosting services etc

Awards

FY 2017-18

  • A Certificate of Appreciation was awarded to ITI Limited in recognition of its significant contribution as ‘best performing equipment supply partners’ to achieve BharatNet Phase I target for connecting over one lakh Gram Panchayats.
  • ITI Raebareli plant has been conferred with the National Safety Awards for the Performance Year 2015 for Outstanding Performance in Safety at industrial establishments for maintaining consistent safety standards.
  • ITI Limited was awarded Indywood Built in India Excellence Awards 2017 in the category of Public Sector - Telecommunications at Ramoji Film City, Hyderabad on December 4, 2017. The award was presented to ITI Limited in recognition of efforts made by the organization to boost the concept of ‘Make in India’ towards the development of telecommunication sector. Indywood Built In India Excellence Awards 2017 was organized as a part of Project Indywood, a $10 Billion Project to be initiated by a consortium of 2000 Indian Corporate and Multi-Millionaires.
  • ITI Limited received India’s Best HR Leaders in PSUs Award from ASIA PACIFIC HRM CONGRESS, TIMES ASCENT hosted by World HRD Congress, Times ASCENT group on September 19, 2017.
  • ITI Limited was honoured with Pride of Karnataka Awards 2017 for Corporate Excellence.
  • ITI was conferred with ‘NIPM LIFE TIME ACHIEVEMENT AWARD 2017’ for Government Administration by National Institute of Personnel Management (NIPM), Palghat Group, Kerala Chapter at the ‘NIPM AWARD NITE 2018’ held at Lead College of Management, Dhoni, Palakkad on January 20, 2018.

FY 2018-19

  • ITI Limited has won ‘India’s Best Company’ Award for the year 2018. ITI was presented the award based on Berkshire Media’s survey and analysis of company’s performance. The IBC Corporate Awards 2019 ceremony was held on March 8, 2019 at The Leela Hotel, Mumbai.
  • ITI Limited received ‘CEO with HR Orientation’ and Shri Shashi Prakash Gupta, Director (HR), ITI Limited received ‘Pride of HR Professional in PSU’ award by World HRD Congress (WHRD) at the 27th Edition of the Congress held on February 15 and 16, 2019.
  • ITI Limited received Best PSU Award in Digital PSU Category by ‘Governance Now’ at 6th PSU Awards held on January 17, 2019 at The Imperial, New Delhi.
  • Outstanding Safety Performance ‘Suraksha Puraskar Award’ was conferred on ITI Palakkad Plant by National Safety Council, Kerala Chapter. ITI Palakkad Plant has won the award for achieving the lowest frequency rate of accidents in the category ‘large size engineering industries’ in industrial safety.
  • ITI Limited has received Certificate of Compliance for Master Card production at Palakkad Plant from Master Card Certification Body, New York. ITI Limited has now become the first Public Sector Unit in the country certified for RuPay and MasterCard production and is the ‘Certified Vendor’ under the Master Card Global Vendor Certification Program.
  • ITI Limited has earned a position in the Top 50 in Fortune India’s ‘The Next 500’ ranking for the year 2019. It figures at 39th rank on the Fortune India’s list.
  • ITI Limited has won Indywood Excellence Award 2018. Shri K Alagesan, CMD, ITI Limited received the award from Shri Mohammed Ibrahim Al Qahtani at Indywood Film Carnival 2018 organized at Hitex, Convention Center, Hyderabad on December 4, 2018.
  • ITI Palakkad Plant received a Certificate of Merit in appreciation of efforts in pollution control and initiatives in environment protection in 2018 in the category of Engineering & Electronic Industries.
  • ITI Limited has won Digital PSU Award for the year 2018.
  • ITI Bangalore Plant and ITI Rae Bareli Plant have won the prestigious National Safety Awards for the performance year 2016 as Winner for excellent performance in Industrial Safety based on Accident Free Year and as Runner Up for outstanding performance in Industrial Safety in achieving Lowest Average Frequency Rate and in achieving Accident Free Year respectively

FY 2019-20

  • ITI Limited bagged the prestigious ‘Company of the Year - PSU award at the second edition of CNBC-AWAAZ CEO AWARDS 2019. Shri R M Agarwal, Chairman & Managing Director, ITI Limited and Shri Shashi Prakash Gupta, DirectorHuman Resource received the prestigious award from Shri Bhupesh Baghel, Chief Minister, Chhattisgarh at the grand ceremony held in Raipur on February 7, 2020.
  • Sustainable HR Leadership Award was conferred to Shri Shashi Prakash Gupta, Director (HR), ITI Limited by World HRD Congress. The award ceremony was held on February 16, 2020 at Taj Lands End, Mumbai.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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