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ITI Ltd Stock Analysis

Mid Cap
Evaluated by 697 users | BSE: 523610 | NSE: ITI |
Telecommunication - Equipment
ITI, incorporated in 1950 as Indian Telephone Industries, is a Government of India Undertaking. ITI offers products and services in the telecom sector. The company has a range of telecom products and total solutions covering the whole spectrum of switching, transmission, access and subscriber...

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 22.8% 32% -2.6% 42%
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 90.30%
Institutions 7.53%
Non-Institutions 2.16%
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 32% 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 11.6% annually over the past ten years.

ITI, incorporated in 1950 as Indian Telephone Industries, is a Government of India Undertaking. ITI offers products and services in the telecom sector. The company has a range of telecom products and total solutions covering the whole spectrum of switching, transmission, access and subscriber premises equipment.

This telecom equipment major has contributed 50% to the existing national telecom network making ITI a telecom pioneer.

The company’s manufacturing units are located

ITI, incorporated in 1950 as Indian Telephone Industries, is a Government of India Undertaking. ITI offers products and services in the telecom sector. The company has a range of telecom products and total solutions covering the whole spectrum of switching, transmission, access and subscriber premises equipment.

This telecom equipment major has contributed 50% to the existing national telecom network making ITI a telecom pioneer.

The company’s manufacturing units are located Bangalore (Karnataka), Naini (UP), Rae Bareli (UP), Mankapur (UP), Palakkad (Kerala) and Srinagar (J&K). It has research and development bases located at Bangalore, Naini and Mankapur.

The company has received ISO 9001:2000 and ISO 14001:2004 for its quality management and has employee strength of 12,745 people.

Alliances/ Partnership/ MOUs

ITI has formed a strategic alliance with BSNL for building a V-SAT based network in Ku band for IP-based satellite broadband services on revenue sharing basis.

The company has entered into a Memorandum of Understanding (MOU) with Huawei, China to develop IP TAX- a next generation networks.

The telecom equipment major has entered into a  MOU with Telsima, USA to cater the WI-MAX (Worldwide Interoperability for Microwave Access) market

ITI has signed a TOT agreement with Alphion, USA for manufacture of G-PON (Gigabit – Passive Optical Network) equipments.

The company has signed a MOU with SEM India for addressing the requirements of BSNL / MTNL for ADSL CPEs (Customer Premises Equipments).

It has also signed an MOU with Xalted, India for manufacture of STM 64 equipments.

Business area

GSM/CDMA- ITI is engaged in manufacturing a range of GSM and CDMA products and solutions. ITI has products such as base trans-receiver station and shelter, roof-top tower, transceiver and CDMA WLL technology.

Defence Products- Under this, the company manufactures products such as Orderwire Secrecy (OWS), Mil PCM Secrecy, Ananda MK II BEU, STM1 Encryptor, BEU IP and Fax Encryptor.

Other Products- The company manufactures diverse range of products such as switched mode power supply (SMPS), fake note detector, digital inverter and currency counting machine.

Services- The company has a Network Systems Unit (NSU) that is engaged in network planning, network engineering, network implementation, related civil works, network maintenance, consultancy services and telesolutions.

 

Outlook

The company is planning to increase its current manufacturing plant at Rae Bareli that is engaged in manufacturing of NODE-B equipments for GSM-3G in alliance with Alcatel Lucent, France.

The company is looking out for partnership to manufacture Fixed Cellular Telephones (FCTs -GSM).

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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