This Tata Group-backed stock zoomed 9% today; check analyst views & other details

Shares of Tata Group-backed Tejas Networks Ltd rose sharply on Thursday, continuing their strong upmove for the third straight trading session. The stock settled 9.10 per cent higher at Rs 876.25. At this closing price, it has climbed 21.72 in the last one month. Despite this recent uptrend, the scrip has slipped 25.77 per cent on a year-to-date (YTD) basis.

The company recently secured Rs 189.17 crore from the Ministry of Communications, Department of Telecommunications, as an incentive under the Production Linked Incentive (PLI) scheme for Telecom and Networking Products for the financial year 2024-25 (FY25). The incentive is a part of the Centre's initiative to promote domestic manufacturing and strengthen India's telecom infrastructure.

"The said amount (Rs 189.17 crore) is the first tranche, amounting to 85 per cent, of the incentive for the first two quarters of FY 2024-2025 and the balance amount is expected to be released subsequently in accordance with the Production Linked Incentive Scheme Guidelines," Tejas Networks stated in a BSE filing.

Analysts largely suggested that the counter looked 'bullish' on charts. That said, support could be seen in the Rs 820-800 zone.

Ravi Singh, SVP - Retail Research at Religare Broking, said, "The stock looked strong on daily charts and can hit an upside target of Rs 950 in the near term. Keep stop loss placed at Rs 860 for this trade."

Kunal Kamble, Senior Technical Research Analyst at Bonanza Group, "A fresh position can be considered in Tejas Networks with a stop loss of Rs 730, targeting an upside move toward Rs 1,160–1,200 levels."

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, "Tejas Networks has experienced a significant increase in both price and trading volume, leading to a clear trend reversal. Support levels are observed around the Rs 820-800 range, with sacrosanct support at Rs 750. Conversely, the stock seems poised to approach the Rs 1,050 level in the near term.

Ameya Ranadive, CMT, CFTe, Senior Technical Analyst at StoxBox, said, "The counter has witnessed a strong bullish breakout, backed by rising volumes. A decisive close above Rs 900 could further accelerate the rally toward Rs 1,050. Investors should maintain a stop loss of Rs 750 to manage risk. The recent surge in volumes indicates strong institutional participation, further strengthening the bullish outlook. As long as the stock holds above Rs 772, the trend remains positive for higher levels."

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 more than 75 countries. As of December 2024, promoters held a 54.01 per cent stake in the Tata Group company.