Tejas Networks Receives 'Buy' Rating from MarketsMOJO, Shows Strong Financial Performance

Tejas Networks, a leading IT hardware company, has recently received a 'Buy' rating from MarketsMOJO. This upgrade comes as the company has shown strong financial performance in the past few quarters.
One of the key factors contributing to this upgrade is the company's low Debt to Equity ratio, which is at an average of 0.07 times. This indicates a strong financial position and stability for the company.

In the latest quarter, Tejas Networks reported a growth in Operating Profit of 1662.51%, showcasing very positive results. This trend has been consistent for the last three quarters, with the company also reporting a growth in net sales and PBT less OI.

The stock is currently in a bullish range and has shown improvement in its technical trend. Multiple factors such as MACD, Bollinger Band, KST, and OBV are all indicating a bullish trend for the stock.

Tejas Networks has also delivered consistent returns over the last three years, outperforming the BSE 500 index in each of the last three annual periods. With a market cap of Rs 23,428 crore, it is the largest company in the IT hardware sector, constituting 42.06% of the entire sector. Its annual sales of Rs 6,260.87 crore make up 6.31% of the industry.

However, there are some risks associated with investing in Tejas Networks. The company has shown poor long-term growth, with an annual rate of -8.58% in Operating Profit over the last five years. Additionally, with a ROCE of 13.6, the stock is currently trading at an expensive valuation with a 4.2 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations.

Moreover, institutional investors have decreased their stake in the company by -1% over the previous quarter, holding only 15.1% collectively. This could be a cause for concern as institutional investors have better resources and capabilities to analyze company fundamentals.

In conclusion, Tejas Networks has shown strong financial performance and has received a 'Buy' rating from MarketsMOJO. However, investors should be aware of the risks associated with the stock and conduct their own research before making any investment decisions.