The shares of this midcap company jumped around 2 percent in Monday’s trading session after receiving an order worth Rs. 96.42 crores from NewSpace India Limited (a Central Public Sector Enterprise (CPSE) under the Department of Space, Govt. of India.
Price Movement:
With a market capitalization of Rs. 20,913 crores, the shares of Tejas Networks Ltd started Monday’s trading session on a higher note at Rs. 1,215 compared to its previous close of Rs. 1,206.40. During the trading session, the shares hit a high of Rs. 1,235.24, gaining around 2 percent and are currently trading at Rs. 1,225 apiece.
What Happened:
According to the exchange filing, on December 8, 2023, the company’s majority-owned and controlled subsidiary Saankhya Labs Private Ltd had received a provisional purchase order of Rs. 96.42 Crores from NewSpace India Limited (a Central Public Sector Enterprise (CPSE) under Dept. of Space, Govt. of India).
The company was awarded a provisional order for supplying, installing, and commissioning Two-way Mobile Satellite Service (MSS) Terminals (Xponders) for marine fishing vessels, aimed at monitoring, control, and surveillance (MCS).
The provisional order will be finalized once NewSpace India Limited accepts the prototype terminals and grants bulk production clearance. NewSpace India Limited has now approved the prototypes, issued the bulk production clearance, and converted the provisional order into a final purchase order.
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Financials:
Looking at the company’s financial performance, the revenue increased by around 18 percent from Rs. 1,327 crores during the March quarter to Rs. 1,563 crores in the June quarter. On the other hand, the net profits declined by around 48 percent from Rs. 147 crores to Rs. 77 crores during the same period.
Ace Investor:
According to the BSE data, Ace Investor Mr Vijay Kedia entered the stock in June 2020 via Kedia Securities Private Limited and currently holds 132 lakh equity shares equivalent to a 1.87 percent stake in this company. The current holding value of his investment amounts to Rs. 390.4 crores.
Order Book:
As of June 2024, the company’s order book stands at Rs. 7,091 crores, with plans for further growth in the upcoming quarters.
The company is focusing on advancing key technologies in wireless RAN, cross-haul, packet and optical transmission, and high-speed broadband access, with the goal of becoming a leading global OEM in telecommunications.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 1.99 percent and a return on capital employed (RoCE) of 4.27 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 2.54 percent.
Company Profile:
Headquartered in Bengaluru, Tejas Networks Ltd was incorporated in 2000. The company designs, develops and manufactures high-performance optical and data networking products that are used by telecom service providers, utilities, government and defence networks.
Written By Vaibhav Patil
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