Tejas Networks
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Tejas Networks is navigating a pivotal transition from heavy R&D investments to a focus on commercialization and profitable growth, as highlighted by management's bullish outlook. The company is strategically targeting high-growth areas such as AI-driven data center connectivity and 5G/6G infrastructure, which are expected to drive revenue growth and improve margins. The conclusion of the BSNL expansion order is anticipated to enhance working capital and cash flow normalization, supporting Vista's forecast of recovering revenue and expanding profitability. However, execution risks related to large-scale government projects and intense competition present challenges. The telecom equipment industry is expanding, driven by technological advancements and increasing demand for connectivity, although pricing pressures remain a concern. Over the next 12-24 months, key opportunities include scaling international operations and capitalizing on the growing demand for high-bandwidth infrastructure, while watchpoints include potential supply chain disruptions and the need for successful execution of government contracts
Why We Like This Stock
- Management's strategic pivot towards AI-driven infrastructure and 5G/6G markets is expected to drive revenue growth
- The conclusion of the BSNL expansion order is likely to improve working capital and cash flow
- A strong order book and successful international trials provide a foundation for future profitability
Things To Watch Out For
- Execution risks related to large-scale government projects could hinder growth
- Intense competition in the telecom equipment sector may lead to pricing pressures
- Potential supply chain disruptions could impact production and delivery timelines
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,471 | 8,923 | 1,103 | 1,458 | 1,643 |
| Profit Before Tax (Cr.) | 100 | 698 | -1,354 | -171 | -649 |
| PBT Margin | 4.0% | 7.8% | -122.8% | -11.8% | -39.5% |
| Net Profit (Cr.) | 78 | 447 | -464 | -129 | -487 |
| Earnings Per Share | 4.3 | 24.7 | -25.6 | -7.1 | -26.9 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Tejas Networks Limited provides telecom and data networking-related products and services in India and internationally. It offers radio access networks, fiber broadband access, satcom solutions, optical aggregation, switching and routing, direct-to-mobile broadcast solutions, metro core and backbone, packet transport networks, network management systems, and mobile packet core products. The company also designs, manufactures, and sells wireless and wireline networking products, including 4G/5G radio access (LTE/NR), converged 4G/5G core, fiber-to-home and fiber-to enterprise (GPON/XGSPON), optical transmission (DWDM/ PTN/OTN), carrier switching and routing (Ethernet, IP/MPLS), satellite, and broadcast networking products; and designs and develops software products that enable remote configuration, monitoring, provisioning and management. In addition, it provides network build, consultancy, nurture, and managed services. It serves communications service providers for both mobile and fixed broadband, internet service providers, broadband bandwidth providers, utility companies, defense, and government entities. The company was formerly known as Tejas Networks India Limited and changed its name to Tejas Networks Limited in March 2008. Tejas Networks Limited was incorporated in 2000 and is headquartered in Bengaluru, India.