TEJASNET - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Swing Trade Rating: 2.6

📊 TEJASNET is currently trading at ₹449, which is below both its 50 DMA (₹515) and 200 DMA (₹660), reflecting a bearish trend. RSI at 32.1 indicates the stock is near oversold territory, suggesting a possible short-term rebound. However, weak fundamentals and negative earnings limit upside potential. The optimal entry price would be near ₹440–₹450, close to its support zone. If already holding, consider exiting around ₹500–₹520, where resistance is expected.

✅ Positive

• 📈 ROCE at 15.4% and ROE at 12.6% show moderate efficiency in capital utilization
• 💰 Dividend yield of 0.56%, though small, provides some shareholder return
• 📊 Slight increase in FII (+0.10%) and DII (+0.07%) holdings, showing marginal institutional interest

⚠️ Limitation

• 📉 Current price below both 50 DMA and 200 DMA, confirming weak technical momentum
• 📊 Debt-to-equity ratio at 1.29, indicating high leverage risk
• 📉 EPS at -22.4 ₹, reflecting negative earnings
• 📉 Very low 52-week index (1.06%), showing poor performance compared to peers

🚨 Company Negative News

• 📉 PAT declined further from -194 Cr. to -307 Cr., worsening losses
• 📉 Quarterly profit variation at -215%, highlighting severe earnings deterioration

🌟 Company Positive News

• 📊 Marginal increase in institutional holdings (FII +0.10%, DII +0.07%)
• 📈 Strong trading volume (10,21,836) compared to average weekly volume (11,14,766), showing active market participation

🏭 Industry

• 📊 Industry P/E at 48.7 is significantly higher, suggesting sector peers are valued more optimistically
• 🌐 Telecom and networking sector remains strategically important, but TEJASNET lags behind industry benchmarks

📌 Conclusion

TEJASNET is a weak candidate for swing trading due to negative earnings, high debt, and poor technicals. While oversold RSI levels may trigger a short-term bounce, risks outweigh rewards. Entry is best near ₹440–₹450, but exits should be considered quickly around ₹500–₹520. Traders should remain cautious and monitor debt levels and quarterly results closely.

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