Multibagger Stock: Tejas Networks records 77% surge in April, achieves 3000% growth over 4 years
Tejas Networks, a Tata Group subsidiary, achieved new lifetime high in trading session, surging 6% to ₹1,183.35 apiece. Strong rally in April reverses previous negative returns, marking largest monthly gain since listing in 2017.
Shares of Tejas Networks, a Tata Group-backed company, have been making headlines throughout April as the stock consistently reached new highs. In today's trading session, it continued its upward momentum by surging 6% to achieve a new lifetime high of ₹1,183.35 apiece.
Throughout the current month, the stock has gained nearly 77%, soaring from ₹656.40 apiece to the current market price of ₹1,159 apiece. This strong rally in April has also reversed the stock's negative returns over the last three months.
April's rally marks the largest monthly gain for the stock since its listing in 2017. Previously, the stock's best monthly gains were recorded in August 2021 (43%) and July 2021 (42.5%). As a result of this surge, the stock has gained an impressive 3000% over the last four years.
The company's market capitalisation also crossed the ₹20,000 crore level in today's trading session. The April rally followed the company's attainment of profitability in Q4 FY24, posting a net profit of ₹147 crore. This achievement marks a significant turnaround after nine consecutive quarters of net losses.
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During this period, the company's revenue from operations reached ₹1,171 crore, marking an impressive 343% year-on-year increase. Similarly, in FY24, the company's net profit rose to ₹63 crore, a substantial improvement from the net losses in FY23 and FY22, respectively.
Additionally, revenue from operations for FY24 surged by 168% year-on-year to ₹2,471 crore. Notably, the company concluded FY24 with an order book of ₹8,221 crore.
According to its investor presentation, progress is underway for the installation of 4G/5G RAN for BSNL’s nationwide network, with equipment shipped to over 10,000 sites.
Tejas Networks specialises in designing and manufacturing high-performance wireline and wireless networking products. These products cater to telecommunications service providers, internet service providers, utilities, defence, and government entities across more than 75 countries.
In March, the company signed an agreement with Telecom Egypt, Information Technology Industry Development Agency and the National Telecom Institute to replicate its experience of implementing Bharatnet (Rural Broadband Project) and NKN (National Knowledge Network) projects in Egypt.
Additionally, the company secured strategic wins for DWDM and switching and routing products in the critical infrastructure sector during the quarter.
Looking at the company's shareholding, Foreign Institutional Investors (FIIs) maintained their stake in the company at 11.3% during the final quarter of the last fiscal year. Meanwhile, Domestic Institutional Investors (DIIs) increased their stake in the company to 4.8% from 4.3% in Q3 FY24.
Conversely, the stake held by the general public fell to 28.3% from 28.6% in the preceding quarter.
Disclaimer: We advise investors to check with certified experts before taking any investment decisions.
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