Stock To Buy: Multibagger Tata Stock Hits 20% Upper Circuit, Gains 37.22% In 1-Week; TP Rs 1100

Multibagger Tata Group company operating in telecom industry, Tejas Networks Ltd share jumped 20% in trade today on BSE. Tejas Networks shares not only touched upper circuit, but hit 52-week high as well. The shares also witnessed more than 10.98 times jump in volume. The company has a market capitalisation of Rs 18,554.26 crore. Tejas Networks stock offered shareholders attractive returns of 115% in last 2-years and rose by a huge 58% in just last 30-days span.

Tejas Networks Quarterly Results: The company declared its net sales at Rs 1,326.88 crore in March 2024, up massively by 343.3% as against Rs 299.32 crore declared in the corresponding quarter of last year. It announced its quarterly net profit at Rs 146.78 crore for March 2024, up by a huge 1379.69% as compared to Rs 11.47 crore announced in March 2023. EBITDA of Tejas declared at Rs 318.79 crore for March 2024, up by robust 2337.23% from Rs 13.08 crore in March 2023. Tejas Networks announced strong surge in its EPS to Rs. 8.61 in March 2024 from Rs. 0.70 in March 2023.

Emkay Global Upbeat On Tejas Networks, Recommends Buy Call: According to the analyst, "We revise our TP to Rs1,100/share (21% upside) vs. Rs975 earlier, based on DCF methodology (WACC: 10.5%; Terminal growth rate: 6%). We retain our BUY rating."

Tejas Networks reported a beat on our revenue and margin estimates, led by BSNL's 4G project execution. We see Tejas benefits chiefly from: 1) GoI emphasis on domestic manufacturing and the PLI scheme; 2) large spends on BSNL, BharatNet, and the Railways; 3) references from TCom and TCS, thus adding new clients; and 4) global move towards replacing Chinese telecom equipment, added the analyst.

Tejas Networks Technical: Its score is 55.41 indicating the stock is technically neutral. Stocks with score above 70 are considered as technically Strong and below 35 are considered weak. RSI is 72.0, RSI above 70 is considered overbought. This implies that stock may show pullback. MFI is 88.7, MFI above 80 is considered strongly overbought. This implies that stock may show pullback. FII/FPI have increased holdings from 11.26% to 11.33% in Mar 2024 quarter. Number of FII/FPI investors increased from 119 to 126 in Mar 2024 quarter. Mutual Funds have increased holdings from 3.92% to 4.27% in Mar 2024 quarter. Institutional Investors have increased holdings from 15.61% to 16.09% in Mar 2024 quarter. Nippon Life India Trustee Ltd-A/C Nippon India Small Cap Fund has stake of 3.65% in Tejas Networks with 6,226,899 shares.

Tejas Networks Dividend History: Tejas Networks Ltd. has declared 1 dividend since July 17, 2019.

About: Founded in 2000, Tejas Networks designs, develops and manufactures high- performance, carrier-class equipment required for building telecommunication networks. The company provides an extensive portfolio of optical, broadband and data networking products, as well as 4G/5G wireless products that are used by telecommunications service providers, internet service providers, utility companies, defence and government entities in 75+ countries, according to its official website.

Disclaimer:

The stock has been picked from the brokerage report of Emkay Global. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.