VIJAY KEDIA stocks increase 7% after receiving ₹ 189 CR from the Communications Department in accordance with the PLI system.
The shares of Vijay Kedia-supported stocks related to the manufacturing of wired and wireless networking products have increased by more than 7 % after the company secured RS.189 crore from the Communication Department.
Price change
Stock at Monday trading session Tejas Networks LTD It rose 7.3 % from the previous closing price of RS.760.45 per share, reaching RS.815.70 all day. But since then, stocks have retreated and have been closed at RS.791.70. Over the past five years, stocks have given more than 2,400 % of revenue.
What is it
Tejas Networks Limited (‘Company’) received the RS.189.1657 crore from the Ministry of Communications, New Delhi and New Delhi on March 29, 2025, in accordance with the PLI (Producted Incentive) system of New Delhi and Networking products.
This amount shows the first installment, which is 85 %of the total incentives for the first 2/4 of the 2024-2025 fiscal year. The remaining balance is expected to be released later according to the guidelines of the PLI system.
This funding is part of the government’s initiative to support the growth and development of telecommunications and networking sectors, and it is expected that the TEJAS network will be a great help in expanding business operations. Financial support will help to lead innovation and strengthen the position of the company in fierce competition and networking markets.
Wireless business
TEJAS Networks has completed the RAN (Radio Access Network) supplies for over 27,000 sites and provided the total number of sites for more than 86,000 for BSNL’s 4G/5G network. The company is also actively participating in the concept proof (POC) with domestic operators for both 4G and 5G technologies. Tejas Networks also discusses with several international operators for the customization of 5G radio suitable for the frequency band of each country.
Also read: Will Raymond dominate the real estate business in Mumbai? Next is what you need to know
Wired business
In the wired sector, Tejas Networks signed a three -year contract with the Vodafone idea to provide equipment to 4G and 5G mobile backhole networks nationwide. The company was also selected as a broadband equipment supplier of Tamil Nadu’s Bharatnet Last Mile Connectivity (LMC) project.
TEJAS also completed the POC and received an initial purchase order for the US network modernization project. The company also secured orders from Asian operators for expansion of mobile backhole networks.
Financial overview
In the recent financial update, TEJAS Networks LTD reported integrated sales of RS.2,642 crores for Q3 FY25, reflecting a 372 % increase compared to Q3 FY24’s RS.560 cross. The company also reported the net profit of FY25’s net profit in the second quarter due to the net loss of RS.45 crores posted last year.
Ratio analysis
The company has a return on capital employment (ROCE) of 13.16 %and a 12.22 %equity yield (ROE). The price (P/E) ratio is 20.12, which is lower than the industry average of 29.79. In addition, the company maintains its current ratio of 2.44, a ratio of 0.78 to debt, and an RS.37.78 of EPS.
Shareholder pattern
As of December 2024, TEJAS Networks LTD has a 54.01 %stake, 8.04 %of foreign institutional investors, 4.65 %for domestic institutional investors, and 32.65 %of the company’s stake. ACE Investor Vijay Kedia has 1.31 %of the company through its company, Kedia Securities Private Limited.
Author -Siddesh S RASKAR
disclaimer
The opinions and investment tips expressed by Tradebrains.in’s investment experts/broking houses/grade agencies are not for websites or management. If you invest in stocks, there is a risk of financial loss. Therefore, investors should pay attention to investing or trading in stocks. Dailyraven Technologies or the author are not responsible for losses due to the results of the decision based on this article. Please contact investment advisor before investing.
