Tejas Networks Ltd Sees Robust Value Trading Amid Mixed Technical Signals

Intraday Trading Dynamics and Price Performance

On 26 Feb 2026, Tejas Networks witnessed a total traded volume of 66.5 lakh shares, translating into a hefty traded value of ₹2,260.28 million (₹226.02 crores). The stock opened at ₹323.55, quickly gaining traction to touch a day high of ₹346.00 before settling near ₹345.65 at the last update time of 09:45:02 IST. This intraday rally represents an 8.08% increase from the previous close of ₹317.80, outperforming its sector peers by 4.84% and the broader Sensex by a notable margin of 7.84% (Sensex gained 0.24%).

Tejas Networks has also recorded consecutive gains over the past two sessions, accumulating a 7.22% return during this period. The weighted average price indicates that a significant portion of volume was traded closer to the day’s low price, suggesting some profit booking or cautious accumulation at lower levels despite the strong upward momentum.

Technical Indicators and Moving Averages

From a technical perspective, the stock is trading above its 5-day and 20-day moving averages, signalling short-term bullishness. However, it remains below its 50-day, 100-day, and 200-day moving averages, indicating that the medium to long-term trend is still under pressure. This mixed technical picture suggests that while short-term traders are optimistic, longer-term investors may remain wary until a sustained breakout above these key resistance levels occurs.

Sector and Market Context

The Telecom - Equipment & Accessories sector, to which Tejas Networks belongs, has shown moderate strength, gaining 2.15% on the same day. This sectoral performance, however, pales in comparison to the stock’s individual outperformance, highlighting Tejas Networks as a standout performer within its industry group. The broader IT - Hardware sector’s modest gains further underscore the stock’s relative strength.

Institutional and Investor Participation

Despite the high trading volumes, investor participation in terms of delivery volumes has declined. On 25 Feb 2026, the delivery volume stood at 2.2 lakh shares, down by 20.91% compared to the 5-day average delivery volume. This decline in delivery volume suggests that a significant portion of the trading activity may be driven by short-term traders or institutional investors engaging in large order flows rather than long-term holders increasing their stakes.

Liquidity remains adequate for sizeable trades, with the stock’s liquidity supporting trade sizes of approximately ₹0.53 crore based on 2% of the 5-day average traded value. This level of liquidity is favourable for institutional investors seeking to enter or exit positions without causing excessive price impact.

Fundamental Assessment and Mojo Ratings

MarketsMOJO’s latest assessment downgraded Tejas Networks from a Sell to a Strong Sell rating on 20 Oct 2025, reflecting deteriorating fundamentals or heightened risk factors. The company’s Mojo Score stands at a low 1.0, signalling weak overall quality and caution for investors. Despite this, the Market Cap Grade is a moderate 3, indicating a small-cap status with some market presence but limited scale compared to larger peers.

This downgrade contrasts with the recent price rally, suggesting that the market’s short-term enthusiasm may be driven by speculative interest or technical factors rather than a fundamental turnaround. Investors should weigh these conflicting signals carefully, especially given the telecom equipment sector’s cyclical nature and competitive pressures.

Valuation and Market Capitalisation

Tejas Networks is classified as a small-cap company with a market capitalisation of approximately ₹6,138 crore. This valuation places it in a segment where volatility can be pronounced, and institutional interest can swing sharply based on news flow, order wins, or sectoral developments. The stock’s recent price action and volume surge may be linked to large order flows or institutional repositioning ahead of anticipated sectoral catalysts.

Outlook and Investor Considerations

While the stock’s recent outperformance and high value turnover highlight strong market interest, the underlying fundamental concerns and recent downgrade urge caution. Investors should monitor upcoming quarterly results, order book updates, and sectoral trends closely to gauge whether the current momentum can be sustained or if it represents a short-lived technical rebound.

Given the mixed signals, a prudent approach would be to consider Tejas Networks as a speculative trading opportunity rather than a core portfolio holding until clearer evidence of fundamental improvement emerges.

Comparative Sector Performance and Peer Analysis

Within the Telecom - Equipment & Accessories sector, Tejas Networks’ recent price gains outpace the sector’s 2.15% rise, underscoring its relative strength. However, the sector itself faces challenges from global supply chain disruptions and competitive pricing pressures, which may weigh on margins and growth prospects.

Peers in the small-cap telecom equipment space have shown mixed results, with some companies benefiting from export orders and government initiatives to boost domestic manufacturing. Tejas Networks’ ability to capitalise on these trends will be critical to reversing its negative rating trajectory and improving investor sentiment.

Institutional Interest and Large Order Flow Impact

The surge in traded value and volume suggests significant institutional activity, possibly driven by large block trades or strategic repositioning. Such activity often precedes announcements related to new contracts, partnerships, or financial results. Market participants should watch for disclosures that could validate or undermine the recent price rally.

Large order flows can also create short-term volatility, and the decline in delivery volumes indicates that many trades may be intraday or speculative in nature. This dynamic can lead to sharp price swings, requiring investors to exercise caution and maintain disciplined risk management.

Conclusion

Tejas Networks Ltd’s recent trading session was marked by high value turnover and a strong price rally, positioning it as a focal point for traders and investors in the telecom equipment sector. However, the company’s fundamental challenges, reflected in a Strong Sell rating and low Mojo Score, temper enthusiasm and highlight the need for careful analysis before committing capital.

Investors should balance the stock’s short-term momentum against its longer-term risks, monitor institutional activity closely, and consider alternative opportunities within the sector or broader market that may offer more favourable risk-reward profiles.

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