New Delhi: The reforms brought about by the Ministry of Finance in the public sector, like, strengthening corporate governance norms, asset monetisation, and the pressure to deliver dividends and perform, have started showing results as PSU shares have been hitting all-time highs. The share which has garnered the limelight in the past two days is ITI Ltd. The shares of ITI Ltd have rallied 7 percent on September 13 to hit the highest level in over 25 years on the Bombay Stock Exchange (BSE). The stock touched Rs 212.45, its highest level since February 1994 on heavy volumes.
Though it paired gains and came down by close to 3 percent to end at Rs 194 per share on Thursday. Sensex and Nifty, however, soared to their all-time highs as Sensex touched 67,771 and Nifty 20,167 within the first few minutes of opening.
In recent times, PSU shares have seen unprecedented highs. For example, Mazagon Dock Shipbuilders Ltd has went up by 410 percent in the last one year, IRCTC shares have grown 346 percent in the last five years, BEML shares have gone up 235 percent and RVNL shares have risen 403 percent in one year.
The average trading volumes on the stock nearly doubled, with a combined 31.2 million equity shares, representing 3.2 percent of total equity, changing hands on both the NSE and BSE.
The stock's previous high of Rs 275 was reached on January 11, 1994, according to the BSE data. Over the last four days, the state-owned telecom equipment and accessories company's, (ITI Limited) stock surged 71 percent following the announcement of its self-branded laptops and micro PCs, which match international quality and performance standards.
The company in an exchange filing revealed that its new 'SMAASH' products have been launched in the market, winning tenders against multinational brands like Acer, HP, Dell, and Lenovo. This public sector undertaking collaborated with Intel to design these products, backed by a Memorandum of Understanding (MoU) for design and manufacturing.
The products feature Intel's i3, i5, i7, and other microprocessor series. The company said that it has bagged tenders from Kerala Infrastructure and Technology for Education (KITE) and has supplied 9,000 laptops to government schools in Kerala. Additionally, more than 12,000 SMAASH PCs have been installed at customer sites, some equipped with solar solutions. With a substantial order book of Rs 11,460.14 crore as of June 30, 2023, the company's revenue outlook is strong.
The government holds a 90.28 percent stake in ITI, with the Department of Telecommunications (DoT) under the Ministry of Communications overseeing its operations. ITI, a pioneer in various government projects such as Make in India, Digital India and Smart City, has been a key contractor for BSNL, MTNL, the Ministry of Defence, and the Ministry of Rural Development.
ITI has secured important projects like BharatNet Phase-II and ASCON Phase IV for the Ministry of Defence and it also supplies smart energy meters and network infrastructure. Furthermore, an extensive order is anticipated from Bharat Sanchar Nigam Limited (BSNL) for the deployment of 4G services.
In its FY23 annual report, ITI revealed plans to establish a 500 MW Solar Module in-house manufacturing facility with High-Efficiency Mono Crystalline Solar Cells, which require an investment of Rs 110 crore in 2023-24.
ITI is also gearing up to manufacture complete Electronic Voting Machine (EVM) systems tailored to the State Election Commission's requirements, including Ballot units, Control units, and VVPAT (Voter Verifiable Paper Audit Trail).