In Friday’s trading session, shares of one of the leading Telecom stocks, specialising in manufacturing telecommunications equipment and providing solutions, hit 20 percent upper circuit following a robust orderbook and frequent volume spikes.
Price action
With a market capitalization of Rs. 36,614 crores on Friday, the shares of Indian Telephone Industries (ITI) Limited hit 20 percent upper circuit making a high of Rs. 457.10 per share compared to its previous closing price of Rs. 380.95 per share.
What Happened
Indian Telephone Industries Limited specializes in manufacturing telecommunications equipment and providing solutions for various sectors, including defense, railways, and smart cities.
On the charts, ITI Ltd’s stock has been in a consistent upward trend since November 2024, following a brief phase of consolidation. Since then, the stock has been registering higher highs and higher lows, reflecting strong bullish momentum.
Additionally, there has been a notable surge in trading volumes since November 2024, indicating growing investor interest. From a technical standpoint, ITI’s stock remains strong, as it is currently trading above its 20-day, 50-day, 100-day, and 200-day simple moving averages (SMAs), confirming its positive outlook.
About the company
Indian Telephone Industries Limited (ITI Ltd) is one of India’s premier public sector companies in the field of telecommunications, offering a diverse portfolio of products and services. Founded in 1948, ITI Ltd is a leader in manufacturing telecom equipment such as switches, broadband and wireless communication solutions, optical fiber cables, and data networking products.
The company has diversified into several sectors, including defence, railways, and smart cities, providing integrated solutions like satellite communication systems, smart metering solutions, and advanced network infrastructure. With its strong foundation in both public and private sectors, ITI Ltd remains at the forefront of India’s telecommunications advancements.
Recent Orderbook
On November 10, 2024, ITI, in partnership with its consortium, emerged as the Lowest Bidder (L1) for Packages 8, 9, and 15 of the BharatNet Phase-3 Project. This project covers regions including Arunachal Pradesh, Nagaland, Manipur, Himachal Pradesh, West Bengal, and the Andaman & Nicobar Islands, with a total order value of Rs 4,559 crore.
The BharatNet Phase-3 Project is divided into 16 packages across all states and union territories, with BSNL inviting tenders for the design, supply, construction, installation, upgradation, operation, and maintenance of the Middle Mile Network under a Design, Build, Operate, and Maintain (DBOM) model.
In addition, ITI secured a Rs 300 crore order from the Bihar Renewable Energy Development Authority (BREDA) for the supply and installation of 100,000 solar street light systems for the Bihar state government.
Shareholding Pattern
The ownership structure of Oil and Natural Gas Corporation Limited is as follows: the promoters hold 90.00 percent, Foreign Institutional Investors (FIIs) own 0.04 percent, Domestic Institutional Investors (DIIs) control 0.04 percent and the public holds 9.92 percent.
Financials
The company’s revenue rose by 302 percent from Rs 256.08 crore to Rs 1,030.87 crore in Q2FY24-25. Meanwhile, Net loss fell from Rs 126.01 crores to Rs 70.33 crore during the same period.
Written by Sridhar J
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