Shares of a Vijay Kedia-backed stock involved in manufacturing wireline and wireless networking products surged over 7 percent after the company secured Rs.189 crore from the Ministry of Communications under the Production-Linked Incentive (PLI) Scheme.
Price Variation
During Monday’s trading session, shares of Tejas Networks Ltd reached an intra-day high of Rs.815.70 each, rising 7.3 percent from the previous closing price of Rs.760.45 per share. However, the shares have retreated since then and closed at Rs.791.70 apiece. Over the past five years, the stock has delivered over 2,400 percent returns.
What Happened
Tejas Networks Limited (the ‘Company’) received Rs.189.1657 crore from the Ministry of Communications, Department of Telecommunications, New Delhi, on March 29, 2025, under the Production Linked Incentive (PLI) Scheme for Telecom and Networking Products.
This amount represents the first installment, which is 85 percent of the total incentive for the first two quarters of the financial year 2024-2025. The remaining balance is expected to be released later, as per the guidelines of the PLI Scheme.
This funding is a part of the government’s initiative to support the growth and development of the telecom and networking sector, and it is expected to significantly benefit Tejas Networks in expanding its business operations. The financial support will assist in driving innovation and strengthening the company’s position in the highly competitive telecom and networking market.
Wireless Business
Tejas Networks has completed RAN (Radio Access Network) supplies for over 27,000 sites, bringing the total number of sites delivered to more than 86,000 for BSNL’s 4G/5G network. The company is also actively engaged in ongoing Proof of Concepts (POCs) with domestic operators for both 4G and 5G technologies. Additionally, Tejas Networks is in discussions with multiple international operators for the customization of 5G radios to suit country-specific frequency bands.
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Wireline Business
In the wireline sector, Tejas Networks has signed a three-year contract with Vodafone Idea to supply equipment for their nationwide 4G and 5G mobile backhaul network. The company has also been selected as the broadband equipment supplier for the BharatNet Last Mile Connectivity (LMC) project in Tamil Nadu, led by the state.
Furthermore, Tejas completed a PoC and received initial purchase orders for a network modernization project in the United States. Additionally, the company has secured orders from an operator in Asia for the expansion of their mobile backhaul network.
Financial Overview
In its recent financial update, Tejas Networks Ltd reported consolidated revenue of Rs.2,642 crores for Q3 FY25, reflecting a substantial 372 percent increase compared to Rs.560 crores in Q3 FY24. Moreover, the company reported a turnaround in net profits to Rs.166 crores in Q3 FY25, from a net loss of Rs.45 crores posted during the same period last year.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 13.16 percent and a Return on Equity (ROE) of 12.22 percent. Its Price-to-Earnings (P/E) ratio stands at 20.12, lower than the industry average of 29.79. Furthermore, the company maintains a current ratio of 2.44, a debt-to-equity ratio of 0.78, and an Earnings Per Share (EPS) of Rs.37.78.
Shareholding Pattern
As of December 2024, the shareholding pattern of Tejas Networks Ltd shows that promoters hold 54.01 percent stake, while Foreign Institutional Investors hold 8.04 percent, Domestic Institutional Investors hold 4.65 percent, and Retail Investors hold 32.65 percent stake in the company. Ace investor Vijay Kedia holds a 1.31 percent stake in the company via his firm, Kedia Securities Private Limited.
Written by – Siddesh S Raskar
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