Tejas Networks Ltd Stock Hits 52-Week Low Amid Continued Downtrend

Stock Price Movement and Market Context

On 22 Jan 2026, Tejas Networks Ltd’s share price touched an intraday low of Rs.317.35, representing a 3.13% drop on the day and a 1.57% decline compared to the previous close. This new 52-week low comes after the stock has experienced a consecutive 10-day losing streak, resulting in a cumulative return decline of -28.16% over this period. The stock’s current price is substantially below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent downward momentum.

In contrast, the broader market has shown mixed signals. The Sensex opened higher at 82,459.66, gaining 550.03 points (0.67%) but was trading slightly lower at 82,076.34 (0.2%) during the day. Despite this, the Sensex remains 4.97% shy of its 52-week high of 86,159.02. Notably, the Sensex has been on a three-week consecutive decline, losing 4.3%, while mid-cap stocks have led gains with the BSE Mid Cap index rising by 0.86% on the same day.

Tejas Networks’ 1-year performance starkly contrasts with the Sensex, having declined by 70.60% compared to the Sensex’s 7.42% gain. The stock’s 52-week high was Rs.1,135.30, underscoring the magnitude of the recent price erosion.

Financial Performance and Profitability Metrics

Tejas Networks Ltd has reported a sharp decline in key financial parameters, contributing to its current valuation pressures. The company declared very negative quarterly results for December 2025, with net sales plummeting by 88.39% to Rs.306.79 crore. Profit before tax excluding other income (PBT less OI) fell drastically by 257.15% to a loss of Rs.310.41 crore, while the net profit after tax (PAT) recorded a loss of Rs.196.55 crore, down 218.6% compared to the previous period.

The company’s profitability ratios remain subdued, with an average return on equity (ROE) of just 2.99%, indicating limited returns generated on shareholders’ funds. Additionally, the debt servicing capacity is constrained, as reflected by a high Debt to EBITDA ratio of 12.63 times, signalling elevated leverage and financial risk.

These financial challenges have led to a downgrade in the company’s Mojo Grade from Sell to Strong Sell as of 20 Oct 2025, with a current Mojo Score of 1.0. The Market Cap Grade stands at 3, reflecting moderate market capitalisation relative to peers.

Valuation and Risk Considerations

The stock’s valuation metrics suggest elevated risk levels. Over the past year, Tejas Networks has generated a negative return of 70.60%, while profits have deteriorated by 215.7%. The company’s EBITDA remains negative, further underscoring the challenges in generating operational cash flows. This combination of weak earnings and high leverage has contributed to the stock trading at levels below its historical averages, indicating a cautious market stance.

Long-term performance has also been below par, with the stock underperforming the BSE500 index over the last three years, one year, and three months. This sustained underperformance highlights ongoing structural issues within the company’s financial and operational framework.

Shareholding and Sectoral Context

The majority shareholding in Tejas Networks Ltd remains with the promoters, maintaining a stable ownership structure. The company operates within the Telecom - Equipment & Accessories sector, which has seen mixed performance amid evolving market dynamics and technological shifts.

Despite the broader market’s modest gains and mid-cap leadership, Tejas Networks’ stock continues to face downward pressure, reflecting sector-specific and company-specific factors that have weighed on investor sentiment and valuation.

Summary of Key Metrics

To summarise, Tejas Networks Ltd’s stock has declined to Rs.317.35, its lowest level in 52 weeks, following a sustained period of negative returns and deteriorating financial results. The company’s net sales and profitability have contracted sharply, with losses widening significantly in recent quarters. Elevated debt levels and weak returns on equity compound the challenges faced by the company.

While the broader market shows signs of resilience, Tejas Networks remains under pressure, trading below all major moving averages and continuing a downward trajectory over the past year and beyond. The stock’s current Mojo Grade of Strong Sell reflects these ongoing concerns and the cautious stance adopted by market participants.

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