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ITI Limited (ITI) Fair Value & Analysis

Technology · IN · Market cap ₹269B

IL ITI Limited ITI · BSE
Price₹279.50
Fair Value₹38.71
Upside-86.2%
Quality44/100
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Strengths

Solidly profitable · 15.4% net margin

Risks

!Trades 86% ABOVE our fair value of ₹38.71
!Weak Growth
!Low debt · negative free cash flow
!Narrow moat 37/100
Weak Growth
Solidly profitable · 15.4% net margin
Low debt · negative free cash flow
Narrow moat 37/100
Evidence: Medium Range ₹26.90 – ₹64.63 Share as image

Fair value as of: Aug 21, 2026

From 11 valuation models · updated today

Share price −2.2% over the past month.

Below-average quality, and screening another 86% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹64.63). The favourable scenario is already priced in.
  • Weak quality (44/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range (₹26.90 to ₹64.63) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹545.80 ₹81.50 Fair Value ₹38.71 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 21, 2026.

How to read this chart

60‑month range ₹81.50 – ₹545.80 · fair‑value band ₹26.90 – ₹64.63 · the ₹279.50 price screens above the ₹38.71 fair value. Dashed = 300-day average. As of Aug 21, 2026.

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Analysis

ITI Limited (ITI) currently trades at ₹279.50, while our model-based Fair Value estimate is ₹38.71, implying the stock looks roughly 86.2% overvalued today. The Quality Score stands at 44/100 (below-average quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, ITI Limited generated revenue of ₹21.1B at a net margin of 15.4%. Revenue declined 14.7% year over year. It earns a return on equity of 16.6%. Net debt stands at ₹7.4B. Fundamentals as of Aug 21, 2026

Our scenario range runs from ₹26.90 (bear case) to ₹64.63 (bull case); at ₹279.50, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 25% below its 52-week high and 20% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -50% fair-value upside, at -86%, ITI screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (₹8.41 to ₹85.16). Read the values as a conservative anchor, not as a price target.
Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹21.11 ₹29.20 ₹111.37 76
Growth-Adj P/E ₹49.39 ₹70.55 ₹91.72 68
P/E Multiple ₹63.87 ₹85.16 ₹106.44 63
All 11 models by family
DCF Models
Owner Earnings ₹41.76 ₹63.90 ₹98.19 31
Earnings-Based
Graham-Dodd ₹20.68 ₹56.20 ₹73.67 54
Lynch FV ₹11.07 ₹15.81 ₹20.56 50
PEG = 1.0 ₹11.07 ₹15.81 ₹20.56 46
Multiples
P/E Multiple ₹63.87 ₹85.16 ₹106.44 63
P/S Multiple ₹38.78 ₹51.70 ₹64.63 58
P/B Multiple ₹38.78 ₹51.70 ₹64.63 55
EV/EBITDA ₹6.37 ₹8.41 ₹10.45 54
Asset-Based
NCAV (Graham) ₹9.90 ₹13.26 ₹19.79 50
Economic Profit
Residual Income ₹21.11 ₹29.20 ₹111.37 76
Growth Earnings
Growth-Adj P/E ₹49.39 ₹70.55 ₹91.72 68

Widest divergence: Growth Earnings (₹70.55) versus Asset-Based (₹13.26). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹21.1B
Revenue growth (YoY) -14.7%
Net margin 15.4%
Return on equity 16.6%
Free cash flow −₹1.4B FY2025
P/E ratio 82.9
More key figures
Operating margin -2.5%
EPS (TTM) ₹3.37
Net debt ₹7.4B FY2025

Figures from reported company fundamentals · as of Aug 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 44/100

Of which business quality 40 · Market factors (momentum, volatility) 47

Profitability 33
Margins and returns on capital today
Quality Growth 20
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 42
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 36
Price trend over the last 3–12 months (market factor)
52W Momentum 31
Distance to the 52-week high (market factor)
Net Issuance 78
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

ITI Limited engages in the manufacture, sale, trading, and servicing of telecommunication equipment in India. The company's telecom products and solutions include switching, transmission, access, and subscriber premises equipment.

Full company description

ITI Limited engages in the manufacture, sale, trading, and servicing of telecommunication equipment in India. The company's telecom products and solutions include switching, transmission, access, and subscriber premises equipment. It also offers smart energy meters, mini personal computers, laptops, 3D printing products, bank automation products, gigabit passive optical network OLT and ONT products, PCM multiplexers, ruggedized telephones for defense forces, smart and banking cards, handheld terminals for smart card authentication, set top boxes, Wi-Fi equipment, encryption devices for defense, solar power modules, switched mode power supply systems, Internet of Things products, radio modems, and AN rack hardware products, as well as digital mobile radio system. In addition, the company trades in optical transport network products, such as DWDM; managed leased line network products; signaling point network products; IP/MPLS routers and switches; network management system solutions; microwave and satellite communication equipment; network equipment; and information technology products and solutions. Further, it offers data center hosting services; EMI/EMC and environmental testing of electronic products; 3D printing services; mechanical fabrication services; reliability engineering lab services; installation, commissioning, operation, and maintenance services; electronic contract manufacturing services; printed circuit board manufacturing services; and component screening services for mission critical components. Additionally, the company builds communication networks using internet protocol/multi-protocol label switching technology, optical fibre cable, microwave radio, and satellite communication channels; provides customized support; and engages in turnkey contracts/solutions and defense projects. ITI Limited was founded in 1948 and is based in Bengaluru, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

ITI Limited reported revenue of ₹21.8B in FY2025 versus ₹18.6B in FY2021, a compound +4.1%/yr. Reported net income was ₹2.9B in FY2025, compounding +25.3%/yr from FY2021.

Growth Quality 25/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
₹21.8B
Latest YoY
−39.6%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+16.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−1.6%
Avg. growth/yr (9Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.9%
Revenue +4.1%/yr
FY21 ₹18.6B
FY22 ₹14.0B
FY23 ₹12.6B
FY24 ₹36.2B
FY25 ₹21.8B
Net income +25.3%/yr
FY21 ₹1.2B
FY22 −₹3.6B
FY23 −₹5.7B
FY24 −₹2.1B
FY25 ₹2.9B

ITI screens 86% overvalued. Compare with Cisco Systems, Inc →

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Cite: Fair Value Calculator (2026). "ITI Limited Fair Value". https://www.fairvalue-calculator.com/stock/ITI.BSE

Peer Group

Communication Equipment · 303 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 44 · Below median
Fair Value upside −82% · Bottom 25%
Return on equity (TTM) 17% · Top 25%
Return on assets -0% · Below median
Net margin (TTM) 15% · Top 25%
Operating margin (TTM) -3% · Below median
Revenue growth -15% · Bottom 25%

Valuation Multiples vs Communication Equipment median · lower = cheaper

P/E (TTM) 82.9× · Pricier than 75% of peers
P/B 14.12× · Pricier than 75% of peers
P/S (TTM) 12.75× · Pricier than 75% of peers

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Communication Equipment stocks, each showing price versus our Fair Value estimate (as of Aug 21, 2026).

Stock Price Fair Value vs Fair Value
Cisco Systems, Inc CSCO $111.61 $61.53 -45%
Zhongji Innolight Co 300308 ¥921.00 ¥171.09 -81%
Foxconn Industrial Internet Co 601138 ¥61.83 ¥28.65 -54%
Eoptolink Technology Inc 300502 ¥429.90 ¥176.99 -59%
Nokia Oyj NOK $10.32 $3.77 -63%
Motorola Solutions, Inc MSI $469.74 $236.33 -50%
Suzhou TFC Optical Communication Co 300394 ¥276.25 ¥43.67 -84%
Accton Technology Corporation 2345 2,270 TWD 1,135 TWD -50%
Telefonaktiebolaget LM Ericsson (publ), ERICB kr 96.52 kr 157.82 +64%
ZTE Corporation 000063 ¥33.67 ¥19.72 -41%

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Frequently asked questions

Is ITI Limited (ITI) overvalued or undervalued?
As of Aug 21, 2026, our model estimates a fair value of ₹38.71 versus a price of ₹279.50, about −86% (overvalued).
What is the fair value of ITI?
Our model-based fair value for ITI Limited is ₹38.71 (as of Aug 21, 2026), built from audited fundamentals. The current price: ₹279.50.
What is the quality score of ITI?
ITI Limited has a Quality Score of 44/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of ITI Limited (ITI)?
ITI Limited reported trailing-twelve-month revenue of about ₹21.1B (latest available figure, as of Aug 21, 2026).
What is the net profit margin of ITI?
The net profit margin of ITI Limited is about 15.4%, meaning it keeps roughly 15.4% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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