ITI Ltd.
ISIN: INE248A01017 • Market Cap: ₹26,948 Cr
The 5-Pillar Quality Audit for ITI Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (-4.0%), Return on Capital Employed (-2.3%), and equity compounding (—).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.95 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (14.8%) and 3Y PAT CAGR (—).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 102.39 vs PEG of — and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 90.0%, backed by 8.0% institutional ownership.
Key Fundamental Strengths
Consistent Market Standing (Large Cap)
Established player in the Telecommunication sector with an overall fundamental quality score of 49/100.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: -2.3%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Elevated Financial Gearing (D/E: 0.95)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Priced for Perfection (P/E: 102.39)
A steep valuation multiple of 102.39 leaves little margin for safety against quarterly earnings misses.
Quantitative Strategy Eligibility
Checking ITI against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 49/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Telecommunication Sector Peer Comparison
Compare ITI directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| ITI Ltd. (ITI)Current | 49/100 | ₹26,948 Cr | 102.39 | -2.3% | 0.95 | — |
| Vodafone Idea Ltd. (IDEA) | 65/100 | ₹1.52 Lakh Cr | 4.07 | -1.7% | -4.18 | View |
| Indus Towers Ltd. (INDUSTOWER) | 76/100 | ₹97,876 Cr | 13.68 | 18.4% | 0.02 | View |
| Bharti Hexacom Ltd. (BHARTIHEXA) | 79/100 | ₹79,950 Cr | 43.83 | 23.9% | 0.38 | View |
| Tata Communications Ltd. (TATACOMM) | 59/100 | ₹47,330 Cr | 50.04 | 17.0% | 3.14 | View |
| HFCL Ltd. (HFCL) | 62/100 | ₹34,668 Cr | 60.55 | 8.6% | 0.37 | View |
Frequently Asked Questions: ITI Ltd.
Q:What is the 5-Pillar Fundamental Score for ITI Ltd. (ITI)?
ITI Ltd. has a RupeeTools Fundamental Score of 49/100, placing it in the 'Caution / Risky' category. Its pillar scores are: Profitability (23/100), Financial Health (63/100), Growth (70/100), Valuation (15/100), and Ownership Quality (72/100).
Q:Is ITI fundamentally strong for long-term investment?
ITI currently holds a moderate quality rating of 49/100. While it operates in the Telecommunication sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does ITI pass the Coffee Can Investing filter?
No. ITI does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does ITI compare against other Telecommunication peers?
Within India's Telecommunication sector, ITI trades at a P/E of 102.39 and generates an ROCE of -2.3%. Compare its 5-Pillar score of 49/100 against top sector peers like Vodafone Idea Ltd. (65/100), Indus Towers Ltd. (76/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.