TEJASNET - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.4

📊 Core Financials Breakdown

Profitability

ROCE: 15.4% and ROE: 12.6% — decent, but not standout.

EPS: ₹10.5 is modest, and recent quarterly losses (₹-194 Cr.) vs. previous ₹-62 Cr. show deteriorating margins.

Quarterly Profit Variation: -339% — highly volatile and concerning.

Balance Sheet

Debt-to-equity: 0.88 — relatively high for a tech firm, raising red flags on leverage.

Dividend Yield: 0.41% — minimal, not a draw for income investors.

Cash Flow & Institutional Sentiment

Negative changes in both FII (-0.94%) and DII (-0.13%) holdings suggest waning institutional confidence.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 62.0 Extremely high — pricing in aggressive future growth.

P/B Ratio ~2.81 Reasonable, given the tech-heavy asset base.

PEG Ratio 0.49 Attractive — implies undervaluation if growth resumes.

Intrinsic Value ~₹550–₹580 (est.) Current price of ₹615 is slightly above fair value.

🧠 Business Model & Competitive Edge

Core Operations: Telecom equipment and network infrastructure, with a focus on indigenous tech.

Strategic Advantage

Backed by Tata Group — a major credibility boost.

Positioned to benefit from 5G rollout and government-led digital infrastructure initiatives

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Challenges

High debt, weak quarterly performance, and declining volumes.

RSI at 57.6 and MACD at 2.13 — neutral to mildly bullish, but not convincing.

📈 Entry Zone & Technicals

DMA 50: ₹615, DMA 200: ₹774 — price is below long-term average, signaling weakness.

RSI: 57.6 — neutral zone.

MACD: 2.13 — slight bullish crossover.

📌 Entry Zone: ₹550–₹590 — accumulation zone if price dips and fundamentals stabilize.

🕰️ Long-Term Holding Guidance

Outlook: Analysts expect long-term upside driven by 5G expansion and Tata Group synergies

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Price Target for 2025: ₹400–₹1,220 range, with potential for ₹2,020 by 2026

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Holding Strategy: High-risk, high-reward. Suitable for long-term investors with strong conviction in telecom infrastructure and Tata-led execution.

Let me know if you'd like a forecast model or peer comparison with Sterlite Tech or HFCL.

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