ITI (ITI)

FairStock Score: 48/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Free cash flow positive at ₹516 Cr despite losses
• Revenue growth of 7.75% and 5-year CAGR of 8.89% show top-line resilience
• Promoter holding at 90.02% provides ownership stability
• Sales in latest quarter at ₹515 Cr indicate meaningful operating scale

Concerns

• Negative earnings with latest quarter net loss of ₹26 Cr and negative P/E
• Extremely high valuation: P/B of 18.62 vs book value of ₹16.32
• DCF intrinsic value of ₹286.66 is below the current price of ₹303.80
• Poor financial health: Altman Z-score of 1.90, negative ROE of -9.42%, and negligible ROCE of -1.33%

AI Analysis

At ₹303.80, ITI sports a market cap of ₹26,034 Cr. For that price you get book value of just ₹16.32 per share—a P/B of 18.62. Where is the earnings support? The company reports a negative P/E because it is losing money. Latest quarter: sales ₹515 Cr, net loss ₹26 Cr. ROE is -9.42%, ROCE -1.33%. No dividend. This is not a business that generates returns on equity. The only bright spot is free cash flow of ₹516 Cr, but with debt/equity of 0.90 and a Piotroski score of 5, the financial health is fragile. The Altman Z-score of 1.90 puts it near the danger zone. Even my conservative DCF estimate values the business at ₹286.66 per share—below the current price. Sales growth of 7.75% and a 5-year revenue CAGR of 8.89% show some top-line momentum, but without profits, that is hollow. Promoter holding at 90.02% is very high, which can be good for control but bad for minority liquidity. This is a speculative turnaround, not an investment. I need a margin of safety. Here, the market is paying a huge premium for a loss-making company. I would wait for consistent profitability and a much lower price before even opening my notebook.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer