ITI share price jumps 8%, up over 40% in May; what should investors do with this PSU stock?

ITI share price has been enjoying a strong bullish momentum over the last few days. Rising for the fourth consecutive session, ITI shares jumped almost 8 per cent in morning trade on the BSE on Thursday, May 29. ITI share price opened at ₹349.80 against its previous close of ₹340 and jumped 7.6 per cent to an intraday high of ₹365.95. Around 9:50 AM, the PSU stock traded 4.26 per cent higher at ₹354.50.

On a monthly scale, the stock has surged over 40 per cent in May so far and is set to extend its winning run to the third consecutive month. Over the last year, the PSU stock has jumped over 20 per cent, hitting a 52-week high of ₹592.85 on January 7 this year and a 52-week low of ₹210.20 on October 25 last year.

The Q4 boost

ITI's Q4 results were better than expectations as its consolidated net loss narrowed to just ₹4.4 crore, compared to a ₹239 crore loss in the corresponding quarter of the previous financial year.

Q4FY25 revenue surged 73.9 per cent year-on-year to ₹1,046 crore from ₹601 crore in Q4FY24. EBITDA loss narrowed to ₹28.2 crore from ₹174 crore YoY.

Meanwhile, ITI announced that its board of directors approved the allotment of equity shares on a preferential basis to the President of India, against a CAPEX infusion of ₹59 crore in line with a BIFR Order dated January 8, 2013.

ITI is India’s first public sector undertaking (PSU) in the telecommunications space.

What should investors do?

Technical experts see bullish patterns on charts and believe the stock has the potential to rise to levels above ₹400.

According to Anshul Jain, the head of research at LakshmishreeInvestments, ITI has surged from a 13-week consolidation, forming a robust double bottom at ₹270 on weekly charts.

Jain said this breakout, fueled by ideal volume accumulation, signals strong bullish momentum.

"The stock is now targeting the 50 per cent retracement level of its prior decline at ₹411. With a solid base acting as a propeller, ITI’s upward trajectory appears promising, making it a key watch for investors seeking dynamic opportunities in the market," said Jain.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, underscored that ITI has established a strong base near the ₹280 level and is currently trading around ₹360, reclaiming the ₹330 mark — a previous support-turned-resistance — indicating strength.

The weekly RSI is holding above 60, suggesting bullish momentum.

"For further confirmation, a sustained weekly close above ₹330 would reinforce the bullish outlook, potentially paving the way for an upside move towards ₹400," said Patel.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.