Tejas Networks
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Tejas Networks is navigating a transitional phase, as management emphasizes a strategic pivot towards AI-driven network infrastructure amidst a backdrop of project delays and a high-cost structure. The company’s strong order book and focus on high-capacity optical products position it well for future growth, supporting Vista's forecast of improving revenue and margins. However, execution risks related to large-scale projects and supply chain disruptions remain pertinent. The telecom equipment industry is expanding, driven by increasing demand for network infrastructure, which aligns with Tejas's long-term growth strategy. Despite current challenges, the anticipated recovery in revenue and profitability, alongside a stable balance sheet, underpins Vista's cautious outlook. Over the next 12-24 months, key opportunities include leveraging international partnerships and scaling manufacturing capabilities, while watchpoints include the successful execution of government projects and managing product reliability issues
Why We Like This Stock
- Strong order book and strategic pivot towards AI-driven infrastructure support revenue recovery
- Focus on high-capacity optical products positions Tejas to capitalize on industry growth trends
- International partnerships with companies like NEC and Rakuten enhance market expansion potential
Things To Watch Out For
- Execution risks related to large-scale government projects could hinder growth
- High-cost structure and ongoing R&D investments may pressure margins in the short term
- Product reliability issues and warranty provisions pose risks to profitability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,471 | 8,923 | 1,103 | 1,452 | 1,560 |
| Profit Before Tax (Cr.) | 100 | 698 | -1,354 | -160 | -607 |
| PBT Margin | 4.0% | 7.8% | -12275.6% | -11.0% | -38.9% |
| Net Profit (Cr.) | 78 | 447 | -464 | -120 | -456 |
| Earnings Per Share | 4.3 | 24.7 | -25.6 | -6.6 | -25.1 |
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.