Recent Price Movement and Market Context
On 8 December 2025, Tejas Networks recorded an intraday low of Rs.470, representing a fall of 4.91% on the day. This decline contributed to a four-day consecutive drop, during which the stock lost approximately 9.5% in returns. The day’s performance also showed the stock underperforming its sector by 2.63%, signalling relative weakness within the Telecom - Equipment & Accessories industry segment.
Tejas Networks is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates a persistent bearish momentum in the stock’s price action over short, medium, and long-term horizons.
Meanwhile, the broader market, represented by the Sensex, experienced a decline of 0.71% on the same day, closing at 85,102.69 points. Despite this, the Sensex remains close to its 52-week high of 86,159.02, trading above its 50-day and 200-day moving averages, which suggests a more resilient market environment compared to the specific challenges faced by Tejas Networks.
Financial Performance Highlights
Tejas Networks’ financial results have shown considerable contraction over recent quarters. The company’s net sales for the quarter stood at Rs.261.82 crores, reflecting a decline of 90.69% compared to previous periods. This sharp reduction in revenue has been accompanied by negative profitability metrics.
The company reported a net loss after tax (PAT) of Rs.307.13 crores for the quarter, which is a fall of 211.6% relative to prior results. Operating profit to interest coverage ratio also remains negative at -3.48 times, indicating challenges in covering interest expenses from operating earnings.
Over the past year, Tejas Networks’ stock has generated a return of -65.15%, contrasting with the Sensex’s positive return of 4.15% over the same period. This divergence highlights the stock’s underperformance relative to the broader market.
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Long-Term Financial and Valuation Considerations
Tejas Networks’ long-term financial indicators reflect ongoing pressures. The company’s average return on equity (ROE) is reported at 2.99%, which suggests limited profitability generated per unit of shareholders’ funds. Additionally, the debt to EBITDA ratio stands at 12.63 times, indicating a relatively high level of leverage compared to earnings before interest, tax, depreciation, and amortisation.
These factors contribute to a weaker fundamental strength profile over the long term. The company has declared negative results for two consecutive quarters, underscoring the challenges in reversing the current financial trajectory.
From a valuation perspective, the stock is trading at levels considered risky relative to its historical averages. The combination of declining profits and sustained losses has weighed on investor sentiment and market valuation.
Sector and Shareholding Overview
Tejas Networks operates within the Telecom - Equipment & Accessories sector, which has seen mixed performance across constituent stocks. While the broader sector has experienced fluctuations, Tejas Networks’ stock has notably lagged behind peers and benchmark indices.
The majority shareholding remains with the company’s promoters, maintaining a significant stake in the business. This concentrated ownership structure continues to influence corporate governance and strategic decisions.
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Comparative Performance and Market Position
Over the last three years, Tejas Networks has underperformed the BSE500 index across multiple time frames including one year and three months. The stock’s 52-week high was recorded at Rs.1,373.60, which contrasts sharply with the current 52-week low of Rs.470, illustrating the extent of the price contraction.
The company’s recent quarterly results and financial ratios indicate a period of subdued performance, with net sales and profitability metrics showing significant declines. This has contributed to the stock’s current valuation and market positioning within the telecom equipment sector.
Despite the broader market’s relative strength, as evidenced by the Sensex’s proximity to its 52-week high and bullish moving averages, Tejas Networks remains on a weaker footing, reflecting company-specific factors impacting its share price.
Summary of Key Metrics
To summarise, Tejas Networks’ stock price has reached Rs.470, its lowest level in the past year, following a series of declines over recent sessions. The company’s financial results reveal a steep fall in net sales by over 90%, a net loss exceeding Rs.300 crores, and a negative operating profit to interest coverage ratio. The stock’s performance over the past year shows a return of -65.15%, contrasting with the Sensex’s positive return of 4.15%.
Trading below all major moving averages and facing a high debt to EBITDA ratio, the stock’s current valuation reflects the challenges faced by the company in maintaining profitability and growth within the competitive telecom equipment sector.
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