Why is Tejas Networks falling/rising?
As of 12-Nov, Tejas Networks Ltd's stock price is 548.45, reflecting an 8.33% increase, but it has a troubling long-term performance with a year-to-date decline of 53.69%. Despite recent short-term gains, the company's significant challenges and weak fundamentals indicate substantial risks for investors.
As of 12-Nov, Tejas Networks Ltd is experiencing a rise in its stock price, currently at 548.45, which reflects an increase of 42.15 or 8.33%. The stock has outperformed its sector by 5.16% today and has shown consecutive gains over the last two days, with a total return of 8.37% during this period. However, despite this short-term positive movement, the stock has a troubling long-term performance, with a year-to-date decline of 53.69% and a one-year return of -57.83%. The company has faced significant challenges, including a drastic fall in net sales by 90.69% and negative operating profits, which contribute to its weak long-term fundamental strength.In the broader market context, Tejas Networks' short-term performance is slightly better than the benchmark Sensex, which has gained 1.21% over the past week compared to the stock's 1.19% increase. However, the stock's long-term performance remains concerning, as it has underperformed the BSE500 index over the past three years, one year, and three months. The company's high debt-to-EBITDA ratio and low return on equity further exacerbate its risk profile, indicating that while there may be short-term gains, the underlying financial health of the company poses significant risks for investors.
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