Shares of this small-cap stock under the Tata Group universe rose to 7 percent in Wednesday’s trading session after the company partnered with a telecom player based in Italy to supply optical networking and broadband access products. In the past six months, the company’s shares have gained over 40 percent.
With a market capitalization of Rs 14,854 crores, the stocks of Tejas Networks Limited, a Tata Group company, opened their trading hour on Wednesday at Rs 884.45 and currently trades at Rs 880.
The scrip saw an intra-day high figure of Rs 939.90 indicating a gain of around 7 percent compared to the previous close of Rs 875.55. The high price is also marked as the company’s all-time high number.
The bullish behaviour in the company’s stock was observed after a filing published with the BSE dated 17th October intimating that the company has partnered with “FibreConnect”, a Telecom Infrastructure developer based in Italy, for the supply of optical networking and broadband access products.
The Tata Group entity will use its multi-technology network management system coupled with an advanced service orchestration solution to deliver a resilient, future-proof network for FibreConnect.
“Besides signaling our emergence as a leading end-to-end supplier of world-class telecom equipment, this win also demonstrates a growing confidence among global telcos in our ability to design and execute complex, large-scale networks, all the way from access to core.”, commented Mr. Anand Athreya, Chief Executive Officer and Managing Director of Tejas Networks.
During the recent financial years, the company has been successful in increasing its operating revenues from Rs 550.59 crores during FY21-22 to Rs 919.57 crores during FY22-23.
Moreover, the company’s bottom-line numbers, though negative, have improved by witnessing a reduction from losses of Rs 62.71 crores during FY21-22 to losses of Rs 36.41 crores during FY22-23.
As per the shareholding pattern data available for the quarter ended September 2023, the company’s Promoters hold a 55.92 percent stake, and the Foreign Institutional Investors (FIIs) hold a 11.11 percent stake in the company.
Tejas Networks Limited is a data and optical networking products company based in India engaged in the business of designing, developing, and manufacturing high-performance products for building high-speed communication networks.
Written by Amit Madnani
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