When it comes to growth potential, Telit Communications (TCM) has a lot to shout about. The global leader in machine-to-machine (M2M) communication is a key enabler of the 'internet of things' and a major beneficiary of rising demand for connectivity, sensing and automation in industries as diverse as healthcare, retail, energy and automotive. It boasts a stellar growth record and has strengthened its product range through acquisitions, yet its shares trade at an unjustified discount to peers.
- Strong sales and profit growth
- Key enabler of the 'internet of things'
- Expanding overseas and making acquisitions
- Shares are cheaply rated
- Mounting industry competition
- Big bets on nascent markets
Telit's 'one stop one shop' strategy of providing hardware, services, network solutions and an application development platform has been key to its success. The group is also benefiting from the shift towards high-speed 3G and 4G wireless standards, especially as its newer wireless modules fetch a higher price. And its market remains strong. Researchers at IHS Technology predict compounded annual growth of 23 per cent in unit shipments of M2M cellular modules between 2012 and 2018, which they expect will drive the market's value up about a fifth annually to $3bn (£1.9bn) in 2018.