The shares of this data networking products company gained up to 1 percent after a well-known brokerage recommended a ‘buy’ rating.
With a market capitalization of Rs 14,670.08 crore, the shares of Tejas Networks Ltd were trading at Rs 863.05 per share, decreasing around 0.33 percent as compared to the previous closing price of Rs 865.90 apiece.
Looking into Tejas Networks Ltd’s performance, revenue increased by 80 percent from Rs 220 crore in Q2 FY23 to Rs 396 crore in Q2 FY24. During the same period, net loss magnified from Rs 3 crore to Rs13 crore.
Emkay Global Financial Services, one of the well-known brokerages in India, gave a ‘Buy’ call on the Tata group stock with a target price of Rs 1,050, indicating a potential upside of 22 percent from Thursday’s price of Rs 860.90 per share.
Here are the grounds behind the broker’s optimistic upside target:
● Tejas Networks is expected to execute orders worth at least Rs 29,200 crore during FY24-28 and to generate revenue and EBITDA of more than Rs 30,000 crore and Rs 6,000 crore, respectively, led by the BSNL and BharatNet projects.
● Tejas Networks’ revenue is expected to increase significantly in fiscal year 2025, according to the brokerage. Furthermore, the brokerage anticipates that the company’s sales will be five times that of fiscal year 2024.
● Emkay stated that Tejas will receive more purchase orders in the next two years, including an ITI PO for 23,633 BSNL 4G sites (2,300 crore); BSNL’s 4G to 5G upgrade (750 crore); BSNL’s pan-India 5G project (estimated at 9,000 crore); BharatNet-3 (estimated at 7,000 crore); and Railways’ upgrade of Kavach to LTE-R (estimated at 15 crore).
Tejas has an order book of 9,271 crore as of Q2 FY24 end, which comprises a 7,490 crore purchase order (PO) from TCS for BSNL’s 4G deployment, a 700 crore PO for BSNL’s MAAN project, and a 230 crore backlog from overseas projects.
Tejas Networks Ltd develops, designs, and manufactures high-performance optical and data networking devices for telecom service providers, utilities, government, and defense networks.
Written by-: Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
