On BSE, shares of Tejas Networks closed at ₹710.50 apiece, up by ₹16.55 or 2.38% on Tuesday. The stock touched the day's high of ₹717 apiece earlier.
At the current market price, the company's market cap is around ₹10,807.41 crore.
On October 16, 2020, the shares were around ₹71.7 apiece on BSE. The market was closed on October 17 and 18 of this year due to the weekend holiday. Comparing from this level, the shares have risen by at least 900% to date (taking into consideration ₹717 apiece). While taking into consideration the current closing price of ₹710.50 apiece, Tejas stock has advanced by at least 890.93% in two years.
Those investors who invested ₹1 lakh in Tejas Networks stock on October 16, 2020, have recorded 900% returns on their investment -- taking their wealth to around R 10 lakh.
Earlier, on October 10 this year, the stock even touched a 52-week high of ₹773 apiece. From its 52-week low of ₹359.50 apiece, that was witnessed on March 8, 2022, the stock has surged by nearly 98% in a little over 8 months.
From October 2020 till date, the lowest level of Tejas was ₹67.10 apiece which was recorded on October 15, 2020. Since then, the shares have made a strong upside with a couple of periodic corrections now and then. However, the long-term stick has been upward in Tejas Networks.
According to ICICI Direct website, Tejas Networks 1-year returns is currently around 37.26% better compared to Bharti Airtel (15.07%), Vodafone Idea (-20.28%), Tata Communications (-15.21%), RailTel Corp (-24.36%), MTNL (8.4%), and OnMobile Global (-7.35%).
Last year, on July 29, Panatone Finvest, a subsidiary of Tata Sons inked an agreement to acquire a 43.35% stake in Tejas Networks for ₹1,884 crore which included preferential allotment of equities worth ₹500 crore and warrants aggregating to ₹1,350 crore. Notably, Panatone and other certain companies of Tata Group made an open offer to acquire 26% of Tejas Networks at a price of ₹258 per share.
As of June 30, 2022, Tata Group's Panatone holds a controlling stake in Tejas to the tune of 7,94,01,810 equity shares or 52.40%.
In Q1FY23, Tejas Networks consolidated net loss narrowed sharply to ₹6.64 crore compared to a loss of ₹49.62 crore in Q4FY22. The company posted a profit of ₹7.55 crore in Q1FY22. Consolidated revenue, however, stood at ₹125.76 crore in Q1FY23 versus ₹126.50 crore in Q4FY22 and ₹144.25 crore in Q1FY22.
As of March 31, 2022, Tejas Networks' net loss stood at ₹117.13 crore and revenue of ₹550.59 crore respectively. In FY22, the company posted strong business momentum and order flow leading to 73% year-on-year growth in the order book. Further, the company received approval from the government for the PLI (Production Linked Incentive) scheme and as a Trusted Source of telecom equipment.
The PLI scheme was launched last year to promote the entire value chain in telecom manufacturing and to reduce India’s dependency on other countries for the import of telecom and networking products. The scheme is a positive for Tejas Networks.
Also, in FY22, Tejas made a successful commercial launch of indigenous 4G RAN equipment after completing proof-of-concept trials for a pan-India 4G network. Further, the company was selected by multiple Tier-1 Indian telcos and ISPs for Metro DWDM and FTTX applications, bagged multi-million dollar wins in Africa and Europe, and further signed a new Tier-1 OEM in the USA.
Earlier this month, Tejas successfully demonstrated a 4G/5G network and applications on an end-to-end indigenous network, using its designed-and-made-in-India hardware and software products. The end-to-end network showed a full range of innovative wireless and wireline products from Tejas Networks and its subsidiary Saankhya Labs.
Tejas will announce its financial performance for the second quarter of FY23 on October 21.
Incepted in 2000, Tejas Networks designs, develops, and manufactures high- performance, carrier-class equipment required for building telecommunication networks.
The company provides an extensive portfolio of optical, broadband, and data networking products, as well as 4G/5G wireless products that are used by telecommunications service providers, internet service providers, utility companies, defence and government entities in 75+ countries. Tejas products are used at various locations in a telecom network including at cell towers, telecom exchanges, data centers, utility sites, and on customer premises.
Last month, in a report for the overall telecom sector, Jahnavi Prabhakar economist at Bank of Baroda said that given the recent structural reforms along with the rollout of 5G connectivity, the sector is poised to expand further in the coming years.
Further, the economist had also said, as the Government of India, prepares to usher in a new digital revolution in the coming months with the launch of 5G services in the country, it is imperative to note how the sector has performed over the years. This has been studied through the share of the telecom sector in credit, ECB approvals in the sector, and the revenue generated through the auction process. In addition to this, the PLI scheme is also projected to generate employment and higher output levels in the coming years, with a boost to the manufacturing sector.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
