Tejas Networks, a prominent player backed by the Tata Group, saw its shares soar by 4.5% during early trading on March 17, reaching a notable three-month high of ₹689. This uptick comes as a welcome change, halting a four-day decline that followed the company’s announcement of receiving ₹123.45 crore from the Ministry of Communications’ Department of Telecommunications. This grant is part of the Production Linked Incentive (PLI) Scheme aimed at bolstering telecom and networking products for the fiscal year 2023-24.
Tejas Networks: A Key Player in Telecommunications
Tejas Networks, integral to the Tata Group with Panatone Finvest as its major stakeholder, specializes in crafting high-performance wireline and wireless networking solutions. Their products serve a diverse clientele, including telecommunications providers, internet service providers, government entities, and defense organizations across over 75 countries.
- Stock Performance: After a tumultuous period where shares plummeted by 50% over the last five months and a staggering 54% from a peak of ₹1,495, the recent surge offers a glimmer of hope for investors.
- Long-Term Gains: Despite recent challenges, the company’s stock still boasts an impressive 1,514% increase over the past five years.
Recent Contracts and Strategic Developments
In the last quarter of the year, Tejas Networks secured a significant three-year agreement with Vodafone Idea to provide essential equipment for its nationwide 4G and 5G mobile backhaul network. Additionally, they were selected as the broadband supplier for the state-led BharatNet Last Mile Connectivity (LMC) initiative in Tamil Nadu.
- International Expansion: The company has also made strides in the U.S. market, completing a proof of concept (PoC) for a network modernization initiative and receiving initial orders for further expansion from an Asian operator’s mobile backhaul network.
Future Prospects: Expanding Horizons
Tejas Networks is strategically positioning itself for growth in both the wireless and wireline sectors. The expansion of BSNL’s 4G network and the transition to 5G present promising opportunities for the company. Furthermore, they are targeting innovative projects such as:
- The Kavach system for Indian Railways, aimed at collision avoidance.
- Private 5G applications for large enterprises across India.
In the wireline domain, Tejas Networks plans to capitalize on the Bharatnet Phase 3 initiatives and enhance DWDM backbone networks for the utilities sector. They are also pursuing Fiber to the Home (FTTH) and network modernization projects in the EMEA and Americas regions.
Conclusion
With a robust portfolio and a clear focus on innovation, Tejas Networks is set to navigate the evolving telecommunications landscape successfully. As they continue to secure vital contracts and expand their technological reach, investors and stakeholders remain optimistic about the company’s potential to thrive in the competitive market.
