Tejas Networks shares tank 7% as Q3 net loss widens; details here

Shares of Tejas Networks Ltd fell sharply in Saturday's special trading session after posting a wider loss in the third-quarter ended on December 31 last year (Q3 FY24). The stock slumped 7.29 per cent to hit a day low of Rs 801.10 over its previous close of Rs 864.05. At today's low price of Rs 801.10, the scrip has declined 14.77 per cent from its one-year high price of Rs 939.90, a level seen on October 18 last year.

The company's consolidated net loss came at Rs 44.87 crore in Q3 FY24 as against Rs 15.15 crore in the year-ago period. However, revenue from operations jumped 103.96 per cent to Rs 559.96 crore during the quarter under review compared to Rs 274.55 crore in the corresponding period last year.

Tejas, in a BSE filing, stated that it has continued investments in scaling up R&D teams and operations to accelerate product development for driving growth, and executing large projects.

It also mentioned that inventory increased to Rs 2,683 crore during Q3 FY24. And, working capital increased in Q3 by Rs 671 crore due to increased inventory.

Tejas and its subsidiaries were granted 31 patents in Q3 FY24. With this, total patent grants grew from 282 to 313.

The stock was trading lower than the 5-day, 10-, 20-, 30-, 50-, 100-day and 150-day simple moving averages (SMAs) but higher than the 200-day SMA. The counter's 14-day relative strength index (RSI) came at 37.78. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 178.87 against a price-to-book (P/B) value of 4.81.

Tejas Networks has a one-year beta of 0.6, indicating low volatility on the counter.

On BSE, around 61,000 shares were seen changing hands today. The figure was higher than the two-week average volume of 23,000 shares. Turnover on the counter came at Rs 4.98 crore, commanding a market capitalisation of Rs 13,928.61 crore.

There were 23,047 sell orders against buy orders of 15,592 shares. As of December 2023, promoters held 55.80 per cent stake in the company.

The company 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 more than 75 countries.

Meanwhile, Indian equity benchmarks were open today in a special but full-fledged trading session. "January 22 has been declared as a public holiday for stock markets by the Maharashtra government owing to the consecration of the Ram temple in Ayodhya and a full-fledged trading session will be held on January 20," NSE informed late on Friday.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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