Tejas Network is trending on August 24; know why?

Shares of Tejas Network Limited have surged 7.8% from its previous close of Rs 494 and are trading at Rs 532.55. 

On August 24, at 11:05 am, the market remains flat. S&P BSE Sensex is trading at 59071.19. Regarding sectoral performance, Realty is the biggest winner, while Auto and Power remain the top losers. 

Regarding stock-specific action, Tejas Network is among the top gainers. At 11:05 am, the shares of Tejas Network Limited have surged 7.8% from its previous close of Rs 494 and are trading at Rs 533.85

The company was recently in news regarding securing a Rs 298 crore deal from Power Grid Corporation of India Limited (PGCIL). Under the contract, for the pan-India expansion of PGCIL’s telecom backbone and access network, Tejas Network will supply, install, commission, and support the company’s optical networking equipment. 

Tejas Network creates high-performance optical and data networking products used by telecom service providers, utilities, government, and defence networks. It is part of Tata Group. Panatone Finvest is a majority stakeholder in the company which is the subsidiary of Tata Sons. 

Through secondary purchase, the company recently acquired 93571 equity shares of Saankhya Labs for Rs 454.19 per share, paying Rs 4.25 crore. With this transaction, Tejas Network now has a 64.4% stake in Saankhya Labs. 

Saankhya Labs is a homegrown wireless communications and semiconductor chipset manufacturer. By 2023, Saankhya Labs Pvt Ltd hopes to commercially introduce its direct-to-mobile technology, which will enable 5G-capable mobile video streaming without the need for a data plan from a telecommunications provider. 

Talking about Tejas Network’s financials, it has reported a net loss for the last three quarters. The 10-year net profit growth remains weak at 3% CAGR. The company has no long-term debt on its balance sheet. 

About the shareholding pattern, the promoters own 52.54%, 10.33% by FIIs, 3.99% by DIIs, and the rest 33.27% is owned by non-institutional investors. 

The company has a market capitalization of Rs 8204 crore and belongs to the S&P BSE SmallCap index.