Rs 4,845 crore order book: Vijay Kedia’s portfolio Tata-Group telecom stock in focus after Vodafone Idea selects this company to scale its backhaul capacity for 4G and 5G rollouts

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 652.05 per share and a whopping 1,380 per cent in just 5 years.

Tejas Networks has secured a significant contract to provide its state-of-the-art GPON OLT, ONT, and Management System for the BharatNet Last Mile Connectivity (LMC) project in Tamil Nadu. This project, spearheaded by TANFINET, aims to bridge the digital divide by extending high-speed internet access to over 50,000 government institutions, healthcare centres and schools. The robust LMC infrastructure will also facilitate FTTH services to rural households, enabling them to benefit from advanced digital connectivity. This collaboration between Tejas Networks and TANFINET will play a crucial role in driving digital transformation and socio-economic development in Tamil Nadu.

Mr. Jagbir Singh, CTO of Vodafone Idea Limited said “As VIL accelerates its pan-India 4G and 5G rollouts, it is critical to upgrade our backhaul network to be scalable, robust and future-ready to efficiently manage the expected growth in data traffic and rising bandwidth demands. We are pleased to welcome Tejas Networks as our wireline network partner in this journey towards VIL 2.0. Their state-of-the-art PTN and OTN products will play a key role in delivering a superior service experience for our customers.”

Mr. Anand Athreya, CEO and Managing Director of Tejas Networks said, “We are proud to be selected as a partner of Vodafone Idea as they embark on an exciting journey to expand and create a nationwide 4G and 5G network in India. We believe that this is a reflection of our ability to design highly flexible and well-differentiated products that consistently align with the evolving needs of top-tier communication service providers such as VIL while drastically lowering the cost and energy per bit.”

About Tejas Network Ltd

Tejas Networks Ltd. designs and manufactures high-performance wireline and wireless networking products for telecommunications service providers, internet service providers, utilities, defence and government entities in over 75 countries. Tejas Networks Ltd. is a part of the Tata Group, with Panatone Finvest Ltd. (a subsidiary of Tata Sons Pvt Ltd.) being the majority shareholder.

The company has a market capitalization of over Rs 22,000 crore backed by Tata Group. Vijay Kedia, an ace investor, owns Kedia Securities Private Limited, which has 32,00,000 shares or 1.87 per cent stake in Tejas Networks Ltd as of September 2024. Additionally, as of September 2024, the promoters own a 55.42 per cent stake, FIIs own a 9.58 per cent stake and DIIs own a 4.76 per cent stake.

Quarterly Results: The net sales increased by 610 per cent to Rs 2,811.26 crore in Q2FY25 compared to Q2FY24. The company reported a turnaround net profit of Rs 275.18 crore in Q2FY25 compared to a net loss of Rs 12.64 crore in Q2FY24: increasing 2,277 per cent.

Half-Yearly Results: The net sales increased by 649 per cent to Rs 4,374.03 crore in H1FY25 compared to H1FY24. The company reported a turnaround net profit of Rs 352.66 crore in H1FY25 compared to a net loss of Rs 38.93 crore in H1FY24: increasing 1,006 per cent.

Annual Results: The net sales increased by 168.1 per cent to Rs 2,470.92 crore in FY24 compared to FY23. The company reported a turnaround net profit of 62.98 crore in FY24 while it reported a net loss of Rs 36.41 crore in FY23: increasing by 273 per cent.

Order Book: As of September 30, 2024, the company's order book stands at Rs 4,845 crore.

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 652.05 per share and a whopping 1,380 per cent in just 5 years. Investors should keep an eye on this telecom stock.

Disclaimer: The article is for informational purposes only and not investment advice.