TEJASNET - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 2.6

Here’s a deep dive into Tejas Networks Ltd (TEJASNET) based on its financials, valuation, and business fundamentals

📊 Core Financials

Profitability & Growth

PAT has worsened from ₹-71.8 Cr to ₹-194 Cr — a 350% decline, signaling severe earnings pressure

EPS: ₹10.4 — modest, but not reflective of current losses

ROE: 12.8%, ROCE: 15.5% — decent historical returns, but current losses dilute their relevance

Balance Sheet & Leverage

Debt-to-equity: 0.89 — relatively high for a tech company, raising concerns about financial flexibility

Dividend Yield: 0.42% — minimal, not a strong income play

💰 Valuation Metrics

Metric Value Interpretation

P/E Ratio 59.6 Extremely high — unjustified given losses

P/B Ratio ~2.7 Reasonable, but not compelling

PEG Ratio 0.55 Low — suggests undervaluation if growth resumes

Intrinsic Value Below CMP Stock appears overvalued currently

🧠 Business Model & Competitive Edge

Core Business: Designs and manufactures wireline and wireless networking products, including 4G/5G radio access, optical transport, and broadband solutions

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Strengths

Strategic partnership with Rakuten Symphony for Open RAN solutions — long-term potential

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Strong presence in telecom infrastructure

Challenges

Q1 FY26 revenue fell 86.5% YoY to ₹202 Cr

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Net loss widened significantly — poor earnings visibility

Institutional investors (FII/DII) reducing stake — sentiment turning cautious

📉 Technical & Sentiment Indicators

RSI: 25.5 — oversold zone, but not yet showing reversal

MACD: -30.0 — bearish momentum

DMA 50 & 200: CMP is below both — confirms downtrend

Volume: Stable, but no signs of accumulation

🎯 Entry Zone & Long-Term View

Suggested Entry Zone: ₹560–₹580 — near 52-week low, but only for high-risk investors

Long-Term Holding: Not ideal at current levels. Wait for earnings recovery and debt reduction. Monitor execution of strategic partnerships and revival in telecom capex.

If you’re looking for safer plays in telecom or digital infra, I can help you explore alternatives. Want to compare it with HFCL or Tata Elxsi?

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