TEJASNET - Investment Analysis

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

Investment Rating: 2.1

📊 Fundamental Analysis of TEJASNET

✅ Positives

Low RSI (25.5): Technically oversold — potential for short-term bounce

PEG Ratio: 0.55: Indicates undervaluation relative to expected growth (if growth resumes)

Decent ROCE & ROE

ROCE: 15.5%

ROE: 12.8% — acceptable efficiency metrics

Strong Volume: Indicates active interest despite price decline

⚠️ Major Concerns

High P/E (59.6): Extremely overvalued relative to earnings and industry PE (45.3)

Negative Profit Trend

PAT Qtr: ₹-194 Cr vs ₹-71.8 Cr — worsening losses

Qtr Profit Var: -350% — alarming deterioration

EPS: ₹10.4 — weak earnings base

High Debt: Debt-to-equity of 0.89 — financial risk elevated

Technical Breakdown

Price below both DMA 50 and DMA 200

MACD: -30.0 — bearish momentum

52w Index: 2.76% — near yearly lows

Institutional Exit

FII: -0.94%

DII: -0.13% — lack of confidence from smart money

📉 Valuation & Ideal Entry Zone

Given the current price of ₹591 and deteriorating fundamentals

Ideal Entry Zone: ₹500–₹540

Only for speculative or turnaround investors

Wait for signs of earnings recovery and debt reduction

🧭 Long-Term Investment Outlook

TEJASNET is not a strong candidate for long-term investment at this stage. Despite a low PEG ratio, the company is posting deepening losses, has high debt, and is trading at an unjustifiably high valuation.

Avoid fresh entry unless turnaround is visible in next 2–3 quarters.

Hold only if you have a high-risk appetite and believe in sectoral tailwinds (telecom, networking).

🚪 Exit Strategy (If Already Holding)

Exit on any bounce toward ₹700–₹750

Near DMA 50 resistance and psychological level

Full Exit: If losses persist and debt remains elevated

Reinvest only if PAT turns positive and debt-to-equity drops below 0.5

Would you like a turnaround checklist to track whether TEJASNET is improving quarter by quarter?

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