Share price of ITI hits surges 5% after ₹200 crore land deal with C-DoT

Market Performance

In the morning trades of February 21, Indian Telephone Industries (ITI), a public sector undertaking, hits the 5% upper-circuit, marking the third consecutive session of gains. The stock opened at ₹281.20 per share, higher than its previous close of ₹270.50, and surged to ₹284, hitting its upper price band. Over the past three sessions, the stock has gained 15%.

Despite the recent upward movement, ITI's share price is 52% lower than its 52-week high of ₹592.85, recorded in January 2025. Over the last month, the stock has declined 26%, and on a year-on-year (YoY) basis, it has dropped 13%.

Land Sale to C-DoT

The recent rally in ITI's share price follows the company's announcement regarding a ₹200 crore land sale to C-DoT. According to an exchange filing, ITI has received a revised order from AMRCD, instructing the company to transfer 22.258 acres of land in Electronic City, Bangalore, to C-DoT via a sale deed for ₹200 crore.

As part of the agreement, ITI received an initial tranche of ₹100 crore from C-DoT on February 19, 2025. The remaining amount is expected to be received upon completion of other statutory formalities.

Financial Performance (Q3 FY25)

ITI recently released its Q3 FY25 financial results:

• Revenue from Operations: ₹1034.54 crore (YoY growth of 300% from ₹258.84 crore)
• EBITDA: Loss of ₹10.6 crore (Reduced from ₹43.5 crore loss in Q3 FY24)
• Net Loss: ₹48.88 crore (Narrowed from ₹101.25 crore loss in the same quarter last fiscal)

Summary

ITI's stock has witnessed a three-day upward trend, hitting the 5% upper circuit limit on each session, following the announcement of its land sale agreement with C-DoT. The company reported significant revenue growth in Q3 FY25, with a reduction in net losses and EBITDA loss compared to the previous year. However, despite the recent surge, the stock remains significantly below its 52-week high and has declined over the past year.