TEJASNET - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 2.9

📉 TEJASNET is currently in a reversal phase with weak momentum and bearish technical indicators. Entry zone: ₹525–₹533; exit zone: ₹585–₹600. Caution advised due to high volatility and negative earnings.

📊 Technical Overview

• Price Action: Trading at ₹533, below both 50-DMA (₹586) and 200-DMA (₹726), indicating strong downtrend.
• RSI (32.2): Approaching oversold territory, but no clear reversal signal yet.
• MACD (-15.1): Deep bearish crossover, confirming persistent downward momentum.
• Bollinger Bands: Price near lower band, suggesting oversold conditions with potential for technical bounce.
• Volume: Slightly below 1-week average, indicating reduced trading interest and weak conviction.
• Support Zones: ₹525 (S1), ₹508 (S2)
• Resistance Zones: ₹585 (R1), ₹600 (R2)

Sources: TradingView Technicals

TradingView

✅ Positive

• ROCE (15.4%) and ROE (12.6%) show moderate capital efficiency.
• Low dividend yield (0.47%) but consistent payout history.
• FII and DII holdings slightly increased, indicating cautious institutional interest.

⚠️ Limitation

• High debt-to-equity ratio (1.29) raises financial risk concerns.
• EPS of -₹22.4 and lack of P/E ratio reflect negative earnings.
• Quarterly loss widened from ₹-194 Cr. to ₹-307 Cr., showing deteriorating profitability.
• 52-week performance nearly flat (0.07%), indicating poor investor returns.

📉 Company Negative News

• Massive quarterly loss and negative profit variation (-215%) signal operational challenges.
• Stock has declined over 36% in the past 485 trading days

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📈 Company Positive News

• Part of Tata Group ecosystem via Panatone Finvest, supporting long-term strategic growth

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• Positioned to benefit from India’s 5G rollout and global telecom infrastructure expansion.

🏢 Industry

• Telecom equipment sector is cyclical but poised for growth with 5G and fiber expansion.
• Industry P/E of 46.8 suggests high growth expectations across peers.

🧭 Conclusion

• TEJASNET is in a reversal phase with bearish momentum and weak technical signals.
• Entry zone: ₹525–₹533; exit zone: ₹585–₹600 for short-term bounce trades.
• Long-term investors should monitor debt levels and earnings recovery before accumulating.