⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
TEJASNET - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.1
| Stock Code | TEJASNET | Market Cap | 5,875 Cr. | Current Price | 331 ₹ | High / Low | 914 ₹ |
| Book Value | 188 ₹ | Dividend Yield | 0.76 % | ROCE | 15.4 % | ROE | 12.6 % |
| Face Value | 10.0 ₹ | DMA 50 | 421 ₹ | DMA 200 | 593 ₹ | Chg in FII Hold | -0.29 % |
| Chg in DII Hold | -0.03 % | PAT Qtr | -197 Cr. | PAT Prev Qtr | -307 Cr. | RSI | 34.3 |
| MACD | -35.0 | Volume | 19,01,597 | Avg Vol 1Wk | 1,14,35,891 | Low price | 294 ₹ |
| High price | 914 ₹ | Debt to equity | 1.29 | 52w Index | 5.95 % | Qtr Profit Var | -219 % |
| EPS | -43.0 ₹ | Industry PE | 42.4 |
📊 Core Financials
- Revenue Growth: Weak, with persistent losses (PAT negative).
- Profit Margins: EPS at -43.0 ₹ indicates significant erosion of profitability.
- Debt Ratios: Debt-to-equity at 1.29 shows high leverage, increasing financial risk.
- Cash Flows: Likely under pressure given recurring losses and debt burden.
- Return Metrics: ROCE at 15.4% and ROE at 12.6% are positive, but sustainability is questionable due to losses.
💹 Valuation Indicators
- P/E Ratio: Not meaningful due to negative earnings.
- P/B Ratio: ~1.76 (Current Price / Book Value), relatively fair but distorted by losses.
- PEG Ratio: Not available, limiting growth-adjusted valuation insights.
- Intrinsic Value: Current price (331 ₹) trades well below DMA 50 (421 ₹) and DMA 200 (593 ₹), reflecting bearish sentiment.
🏢 Business Model & Competitive Advantage
- Operates in telecom and networking equipment, a capital-intensive and competitive sector.
- Competitive advantage limited; faces strong global and domestic rivals with healthier balance sheets.
- Business model strained by high debt and inability to generate consistent profits.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Only attractive near strong support levels around 290–310 ₹, given volatility and weak fundamentals.
- Long-Term Holding: Risky unless turnaround in profitability and debt reduction occurs. Suitable only for speculative investors with high risk appetite.
Positive
- Quarterly losses narrowed from -307 Cr. to -197 Cr.
- ROCE and ROE remain positive despite losses.
- Dividend yield of 0.76% provides minor shareholder return.
Limitation
- Negative EPS (-43.0 ₹) and absence of meaningful P/E ratio.
- High debt-to-equity ratio (1.29) increases financial vulnerability.
- Weak technical indicators (RSI at 34.3, MACD negative).
Company Negative News
- Consistent losses impacting balance sheet strength.
- Decline in both FII (-0.29%) and DII (-0.03%) holdings.
Company Positive News
- Quarterly losses reduced, showing signs of operational improvement.
- Strong trading volumes indicate continued investor interest despite challenges.
Industry
- Industry P/E at 42.4, reflecting premium valuations compared to TEJASNET’s negative earnings.
- Telecom equipment industry benefits from digital infrastructure growth, but competition remains intense.
Conclusion
- TEJASNET faces significant financial stress with high debt and negative earnings.
- Short-term speculative opportunities exist near support levels, but long-term holding is risky without a clear turnaround strategy.
- Investors should monitor debt restructuring and profitability improvements before considering substantial exposure.
Would you like me to also prepare a risk-reward matrix in HTML to visually map TEJASNET’s upside potential against its financial risks?