Tejas Networks May Give an Unlimited Target

  • Stock Market Analysis

Tejas Networks (NS: TEJS ) Ltd. (NS: TEJS) is an optical, broadband, and data networking Products Company based in India. The company designs, develops, and sells its products to telecom service providers, internet service providers, utilities, and security and government entities in 75 countries. The company has built many IPs in multiple areas of Telecom networking and has emerged as an exporter to other developing countries including Southeast Asia and Africa.

The company went public on BSE and NSE in June 2017 with a valuation of Rs 2,301 crore (23,010,000,000). On 29 July 2021, Tata Sons, through its subsidiary Panatone Finvest Limited, initiated an investment in TEJASNET to buy a 43.35% stake for Rs 1884 crore through shares and warrants. In April 2022, Tata Sons, through Panatone Finvest Limited, increased its shareholding of TEJASNET to 52.45%, and thus, acquired the majority of Tejas' shares. Now Tata Sons has acquired a 55.97% stake in TEJASNET. TEJASNET is looking to use TATA GROUP’S backing to expand its telecom products portfolio.

TEJASNET acquired a 64.40% stake in wireless solutions company Saankhya Labs in July 2022. TEJASNET Board approves the amalgamation of Saankhya Labs with the Company. The acquisition comes at a time when the Tata Group is looking to set up a $300 million semiconductor manufacturing facility and is in talks with various state governments to identify the land.

The facility will be used for outsourced semiconductor assembly and testing. This acquisition shows continued commitment to expanding wireless product offerings to address the growing market opportunity. Saankhya's products would complement existing 4G/5G Radio Access Network (RAN) products and position well for emerging opportunities in the O-RAN and 5G broadcast space.

TEJASNET also has products created on 10G-PON technology, and its equipment is upgradable to 5G. They help private telecom operators in India by supplying GPON equipment. They are partnering with system integrators to bid for BSNL’s 4G tender and investing in 4G wireless. TEJASNET also supports BSNL’s optical transmission network. The company is supplying its products to Bharti Airtel (NS: BRTI ) (NS: BRTI) for supporting optical networks and implementing 5G backhaul, B2B services, and broadband applications.

The company also supplies GPON equipment to private telecom operators in India. Tejas Networks' GPON solution has been deployed in Bharat Net, it is the world's largest Greenfield rural broadband rollout delivering high-speed Internet services to more than 200 million people. TEJAS Equipment has helped provide broadband internet to all of India's gram panchayats and has helped connect 40,000 villages so far. Its’ broadband products are helping 70% of the requirements of the Bharat Net project.

TEJASNET receives a purchase order worth Rs 7,492 crore from TCS for 4G/5G equipment. Since TCS is a subsidiary of Tata Sons and the ultimate holding company of TEJASNET is Tata Sons too, they are related parties, and the deal is a related-party transaction. TEJASNET, part of the Tata Group, that designs and manufactures wireless networking products, said on Wednesday that it has received a purchase order worth Rs 7,492 crore for equipment from Tata Consultancy (NS: TCS ) Services, also part of the Tata Group. TEJASNET said that it has executed a master contract for the supply, support and annual maintenance services of its Radio Access Network (RAN) equipment for BSNL’s pan-India 4G/5G network with TCS.

As of 30.06.2023, the shareholding pattern of TEJASNET shows that the promoter holds 55.97% of shares, FIIs hold a 10.91% stake, DIIs hold 3.89% shares, mutual funds hold 3.57% shares and others hold 29.23% shares. The company is currently available at a face value of INR 10. Yesterday's close price of TEJASNET was INR 843.00 and its TTM EPS is -2.81 and it is trading at a PE of -300.50. Its 52-week high price was INR 893.30 and 52 week low price was INR 467.10.

The company's future looks bright and if investors remain invested for the long term, for about 15 years, then high growth, EPS, dividend and bonus benefits may be observed. It may give a good return in the form of a pension by way of dividend earning and high future price which may reflect because of an increase in the number of shares due to bonus.

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  • Tariq M @Tariq M
    Tejas network thanks 👍 for info I am following this stock from a week
    Like 3
  • sunil monga @sunil monga
    Great to know detailed.. why eps is in minus?
    Like 4
  • Dinesh Singh @Dinesh Singh
    thankyou for the indepth article , Sir.
    Like 1

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