Tejas Networks Falls to 52-Week Low of Rs.492.5 Amidst Continued Downtrend

Recent Price Movement and Market Context

On 24 Nov 2025, Tejas Networks recorded an intraday low of Rs.492.5, representing a 2.05% drop during the trading session. This level is the lowest the stock has touched in the past 52 weeks, reflecting a sustained period of price pressure. Over the last five trading days, the stock has declined by approximately 5.04%, signalling a persistent negative trend. In comparison, the Telecom - Equipment & Accessories sector has outperformed Tejas Networks, with the stock underperforming the sector by 1.72% on the day.

Tejas Networks is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a broad-based weakness across short, medium, and long-term technical indicators. This contrasts with the broader market, where the Sensex opened 88.12 points higher and is trading at 85,369.59, just 0.51% shy of its 52-week high of 85,801.70. The Sensex has been on a three-week consecutive rise, gaining 2.59% during this period, supported by strong performances from mega-cap stocks.

Financial Performance and Key Metrics

Tejas Networks has experienced a challenging financial year, with its stock price reflecting underlying business pressures. Over the past 12 months, the stock has generated a return of -61.26%, significantly lagging behind the Sensex, which has recorded a 7.90% gain in the same period. The stock’s 52-week high was Rs.1,403.15, highlighting the extent of the decline to the current low.

The company’s net sales for the quarter stood at Rs.261.82 crore, showing a sharp fall of 90.69% compared to previous periods. This steep reduction in sales has contributed to negative quarterly results for two consecutive quarters. Operating profit to interest ratio for the quarter was recorded at -3.48 times, indicating that operating earnings are insufficient to cover interest expenses. The debt-equity ratio for the half-year period is at a high 11.34 times, signalling elevated leverage levels.

Return on equity (average) is at 2.99%, which suggests limited profitability relative to shareholders’ funds. The company’s ability to service its debt is constrained, with a debt to EBITDA ratio of 12.63 times, reflecting significant financial obligations relative to earnings before interest, tax, depreciation, and amortisation.

Long-Term and Short-Term Performance Trends

Tejas Networks has underperformed not only in the recent year but also over longer time horizons. The stock’s returns over the last three years, one year, and three months have lagged behind the BSE500 index, indicating below-par performance relative to a broad market benchmark. Profitability has also been under pressure, with profits falling by 189.6% over the past year, further underscoring the financial strain on the company.

The stock’s current valuation is considered risky when compared to its historical averages, reflecting market concerns about the company’s financial health and growth prospects. Despite the broader market’s positive momentum, Tejas Networks continues to face headwinds that have weighed on its share price.

Shareholding and Sector Position

The majority shareholding in Tejas Networks is held by promoters, which remains consistent. The company operates within the Telecom - Equipment & Accessories sector, a segment that has seen mixed performance across its constituents. While the sector has shown resilience in some areas, Tejas Networks’ stock has not mirrored this trend, reflecting company-specific challenges.

Despite the broader market’s positive trajectory, including the Sensex trading above its 50-day moving average and the 50 DMA positioned above the 200 DMA, Tejas Networks remains in a downtrend. This divergence highlights the stock’s relative weakness within its sector and the market at large.

Summary of Key Price and Financial Indicators

To summarise, Tejas Networks’ stock has reached a 52-week low of Rs.492.5, with a five-day consecutive decline amounting to a 5.04% loss. The stock trades below all major moving averages, signalling sustained downward momentum. Financially, the company has reported a sharp fall in net sales, negative operating profit to interest coverage, and elevated debt levels. Its return on equity remains modest, and profitability has contracted significantly over the past year. These factors collectively contribute to the stock’s current valuation and market performance.

While the broader market and sector indices have shown strength, Tejas Networks continues to face challenges that have been reflected in its share price and financial metrics over recent quarters.

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