TEJASNET - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 1.9
| Stock Code | TEJASNET | Market Cap | 7,379 Cr. | Current Price | 415 ₹ | High / Low | 762 ₹ |
| Book Value | 165 ₹ | Dividend Yield | 0.60 % | ROCE | -14.7 % | ROE | -27.0 % |
| Face Value | 10.0 ₹ | DMA 50 | 416 ₹ | DMA 200 | 510 ₹ | Chg in FII Hold | -0.66 % |
| Chg in DII Hold | -0.44 % | PAT Qtr | -218 Cr. | PAT Prev Qtr | -197 Cr. | RSI | 48.6 |
| MACD | -1.73 | Volume | 19,48,335 | Avg Vol 1Wk | 17,23,042 | Low price | 294 ₹ |
| High price | 762 ₹ | Debt to equity | 1.42 | 52w Index | 25.9 % | Qtr Profit Var | -252 % |
| EPS | -51.6 ₹ | Industry PE | 53.8 |
📊 TEJASNET’s fundamentals remain weak. ROCE (-14.7%) and ROE (-27.0%) are negative, highlighting poor efficiency. EPS is deeply negative (-51.6 ₹), and quarterly PAT worsened (-218 Cr. vs -197 Cr.), showing deteriorating profitability. Debt-to-equity ratio of 1.42 indicates high leverage. Despite a book value of 165 ₹ and a small dividend yield (0.60%), valuation metrics like P/E and PEG are distorted due to losses, making intrinsic value unjustifiable. Technical indicators (RSI 48.6, MACD -1.73) show weak momentum, with price below 200 DMA (510 ₹).
💡 Entry Price Zone: Only speculative accumulation near 300–350 ₹ (closer to 52-week low of 294 ₹). Buying above 420 ₹ carries significant downside risk.
📈 Long-Term Holding Guidance: TEJASNET is not suitable for long-term holding unless profitability turns positive and leverage reduces. Conservative investors should avoid until earnings visibility improves.
Positive
- Book value of 165 ₹ provides some asset backing.
- Dividend yield of 0.60% offers minor shareholder return.
- Price near 50 DMA (416 ₹) may act as short-term support.
- Volume slightly above weekly average, showing speculative interest.
Limitation
- Negative ROCE (-14.7%) and ROE (-27.0%).
- EPS (-51.6 ₹) reflects deep losses.
- High debt-to-equity ratio (1.42) increases financial risk.
- Price below 200 DMA (510 ₹), signaling long-term weakness.
- MACD negative (-1.73), showing weak momentum.
Company Negative News
- Quarterly losses worsened (PAT -218 Cr. vs -197 Cr.).
- Profit variation at -252% reflects deteriorating financials.
- Decline in FII (-0.66%) and DII (-0.44%) holdings shows lack of institutional confidence.
Company Positive News
- Dividend payout continues despite losses.
- Stock trading above 52-week low, offering speculative opportunity.
Industry
- Industry PE at 53.8 indicates high valuations in the sector.
- Telecom/optical networking industry remains competitive but capital intensive.
Conclusion
⚠️ TEJASNET is a weak fundamental candidate with negative profitability, high leverage, and poor momentum. It may only suit speculative traders near 300–350 ₹ with strict stop-loss discipline. Long-term investors should avoid until earnings turnaround and debt reduction improve financial health.
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