Tejas Networks Hits 52-Week Low Amid Significant Sales and Profit Declines

Tejas Networks, a midcap player in the Telecom Equipment & Accessories industry, has experienced significant activity today, hitting a new 52-week low of Rs. 628.65. This decline follows a trend where the stock has underperformed, with a staggering 52.23% drop over the past year, contrasting sharply with the Sensex's modest gain of 2.33% during the same period.
Today's performance aligns with the sector, but it marks a reversal after three consecutive days of decline. Notably, Tejas Networks is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a challenging market position.

The company recently reported a dramatic decline in net sales, down 87.08%, alongside a significant drop in profit before tax, which fell by 382.81%. Institutional investors have also reduced their stake by 0.76%, now holding 11.94% of the company, reflecting a cautious sentiment among larger investors.

Despite these challenges, Tejas Networks maintains a market capitalization of Rs. 11,134 crore, making it the second-largest company in its sector, with annual sales accounting for 7.02% of the industry.