Tejas Networks shares hit record high on pact with FibreConnect for broadband services

Shares of Tejas Networks Ltd hit a record high in early deals today after the Tata Group firm said FibreConnect, an innovative wholesale telecom infrastructure developer in Italy, has successfully launched its broadband services in that country using its state-of-the-art telecom and networking products. Tejas Networks designs and manufactures wireless networking products. Tejas Networks share gained 7.34% to a record high of Rs 939.90 today. At 10:21 am, around 0.49 lakh shares of Tejas changed hands amounting to a turnover of Rs 4.47 crore on BSE.    

Market cap of the firm rose to Rs 15,487 crore. In a year, the stock has gained 28.52% and risen 50.64% in 2023. The stock hit a 52-week low of Rs 510.05 on January 30, 2023.    

Tejas Networks has a one year beta of 1.6, signaling high volatility during the period.   

In terms of technicals, the relative strength index (RSI) of Tejas Networks stands at 53.8, signaling it's trading neither in the oversold or overbought territory. Tejas Networks shares are trading higher than the 5 day, 10 day 20 day, 30 day, 50 day, 100 day and 200 day moving averages.     

Tejas Networks is the sole supplier of optical networking and broadband access products for FibreConnect’s country-wide FTTP (fiber-to-the-premise) rollout, ranging from DWDM/PTN/OTN for Core to xPON and Ethernet for Access, the Tata Group firm said.  

“Based on a unique business model built around partnerships with regional and retail ISPs (Internet Service Providers), FibreConnect targets industrials areas in Italy which currently lack broadband infrastructure to support the Italian government’s‘Transition 4.0’ plan to promote the digital transformation of its manufacturing sector,” said Tejas.  

 In September 2023, the company received a mobilisation advance of Rs 750 crore from Tata Consultancy Services (TCS). The advance has been paid with respect to a deal toward supplying radio access network equipment for BSNL’s pan-India 4G/5G network.   

In mid-August, Tejas Networks won a contract from TCS for the supply, support, and annual maintenance services for Radio Access Network equipment for BSNL’s Pan-India 4G/5G network for approximately 100,000 sites in August. The total order value is Rs 7,492 crore. The supply of the equipment will be executed by the company across 2023 and 2024, whereas support and maintenance services will be for a period of 9 years post the warranty period.  

Tejas Networks reported a widening of loss to Rs 26.29 crore by 296% in the June 2023 quarter compared to Rs 6.64 crore loss in the corresponding period last year. However, revenue from operations climbed 43.56 per cent to Rs 207.37 crore in the first quarter of current fiscal, compared to Rs 144.45 crore in the year-ago period.  The firm’s performance in terms of net profit has not been impressive since December 2021. Of the last seven quarters, the firm incurred losses in six.    

Tejas Networks produces optical and data networking products.  It designs,  develops  and  sells  high-performance  and  cost-competitive  networking  products  to telecommunications  service  providers,  internet  service  providers,  utilities,  defence  and  government  entities  in over  75 countries.     

 

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