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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Tejas Networks Ltd

About the Company - Tejas Networks Ltd

Tejas Networks Ltd. is a Public Limited Listed company incorporated on 24/04/2000 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L72900KA2000PLC026980 and registration number is 026980. Currently Company is involved in the business activities of Manufacture of communication equipment. Company’s Total Operating Revenue is Rs. 549.14 Cr. and Equity Capital is Rs. 117.82 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Telecom ServicesPlot No. 25, JP Software Park, Electronic City Phase-1, Bengaluru Karnataka 560100corporate@tejasnetworks.com
http://www.tejasnetworks.com
Management
NamePosition Held
Mr. N Ganapathy SubramaniamNonExeChairman&NonInd.Director
Mr. Anand S AthreyaManaging Director & CEO
Mr. Arnob RoyCOO & Executive Director
Mr. A S LakshminarayananNon Exe.Non Ind.Director
Mrs. Leela K PonappaInd. Non-Executive Director
Mr. Chandrashekhar Bhaskar BhaveInd. Non-Executive Director
Mr. P R RameshInd. Non-Executive Director
Prof. Bhaskar RamamurthiInd. Non-Executive Director
Mr. Alice G VaidyanInd. Non-Executive Director

Tejas Networks Ltd. Share Price Update

Share PriceValue
Today₹730.00
Previous Day₹749.05

Basic Stock Data of Tejas Networks Ltd

Market Cap 13,023 Cr.
Current Price 763
High / Low940/545
Stock P/E
Book Value 177
Dividend Yield0.00 %
ROCE1.20 %
ROE1.62 %
Face Value 10.0

Data Source: screener.in

Competitors of Tejas Networks Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Vodafone Idea Ltd 85,774 Cr. 17.618.4/5.70 18.70.00 %%% 10.0
OnMobile Global Ltd 914 Cr. 86.1128/55.648.2 61.90.00 %1.94 %1.20 % 10.0
Uniinfo Telecom Services Ltd 54.5 Cr. 51.057.0/15.121.4 31.00.00 %3.09 %1.91 % 10.0
Reliance Communications Ltd 644 Cr. 2.332.49/1.00 2820.00 %%% 5.00
Industry Average424.38 Cr39.2617.498.40%1.26%0.78%8.75

Tejas Networks Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales135202144173107126126220275299188396560
Expenses121172127154135215133198267308234383567
Operating Profit14301818-28-88-7228-8-4613-8
OPM %10%15%12%11%-26%-70%-6%10%3%-3%-25%3%-1%
Other Income9484161419202121191815
Interest1111101555578
Depreciation12141618202223303435344248
Profit before tax91983-33-96-137-9-27-66-18-49
Tax %0%-81%9%-10%26%48%49%147%-62%58%60%29%8%
Net Profit93484-24-50-7-3-15-11-26-13-45
EPS in Rs0.993.600.810.32-2.13-4.33-0.44-0.21-0.99-0.68-1.55-0.74-2.64

Tejas Networks Ltd Quarterly Chart

Tejas Networks Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2013694233876278757509003915275519201,443
Expenses2163223283195147115977044784736319061,492
Operating Profit-14479568113164153196-8753-8014-49
OPM %-7%13%22%18%18%19%20%22%-22%10%-15%2%-3%
Other Income7-4210104-2228373425438174
Interest40364647493213178431525
Depreciation4548564938566166775277122160
Profit before tax-93-793-182954106150-13923-117-43-159
Tax %0%-0%0%0%0%-73%-0%2%-71%-67%46%15%
Net Profit-93-793-182993107147-23738-63-36-95
EPS in Rs-15.94-13.560.48-3.074.5913.1511.7316.05-25.714.03-5.47-2.16-5.61
Dividend Payout %0%0%0%0%0%0%0%6%0%0%0%0%

Tejas Networks Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)15.05%103.80%-700.00%261.11%220.69%15.05%37.38%-261.22%116.03%-265.79%42.86%
Change in YoY Net Profit Growth (%)0.00%88.74%-803.80%961.11%-40.42%-205.64%22.33%-298.61%377.26%-381.82%308.65%

Tejas Networks Ltd Growth

Compounded Sales Growth
10 Years:10%
5 Years:4%
3 Years:33%
TTM:93%
Compounded Profit Growth
10 Years:-4%
5 Years:%
3 Years:23%
TTM:-28%
Stock Price CAGR
10 Years:%
5 Years:37%
3 Years:50%
1 Year:21%
Return on Equity
10 Years:1%
5 Years:-2%
3 Years:-1%
Last Year:-2%

Tejas Networks Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital62626262677494959597118172173
Reserves2992202232062945191,0581,2259851,0381,4752,8012,834
Preference Capital039396400000000
Borrowings2212222682502592812128222050138
Other Liabilities591521932102191601752641321564985791,719
Total Liabilities6406567457288381,0341,3301,5851,2411,3122,1103,6024,864
Fixed Assets11177655194927599791111386471,036
CWIP75718488521947412724401542
Investments160000077875137402262717
Other Assets4385085975896929241,1321,3581,0851,1391,5312,5393,108
Total Assets6406567457288381,0341,3301,5851,2411,3122,1103,6024,864

Tejas Networks Ltd Reserves and Borrowings Chart

Tejas Networks Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 34252776127150239-821158-17-380
Cash from Investing Activity -38-0-74-29-50-140-213-10471-167-828-581
Cash from Financing Activity -15815-40-41-28157-11-22-3839999
Net Cash Flow-1934-32837-18183-19750-13-638

Tejas Networks Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days143136193196148160134252351236189198
Inventory Days715340341405238129179143452290327421
Days Payable1531642252522057798129134125131196
Cash Conversion Cycle705312309349181212215266669401384423
Working Capital Days560287289318182179256304585388558493
ROCE %2%9%5%13%16%12%13%-11%2%-8%-1%

Tejas Networks Ltd Financial Efficiency Indicators Chart

Tejas Networks Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters0.00%0.00%0.00%37.32%37.17%52.40%52.20%51.97%56.37%55.97%55.92%55.80%
FIIs21.27%20.32%14.48%14.24%14.01%10.33%10.84%11.22%10.49%10.91%11.11%11.26%
DIIs7.60%7.38%5.70%5.25%5.21%3.99%4.14%4.20%3.98%3.89%4.03%4.35%
Public71.13%72.30%79.82%43.19%43.60%33.27%32.82%32.60%29.16%29.21%28.93%28.58%
No. of Shareholders49,35456,77780,41596,1981,03,5251,37,9731,34,7821,47,4551,45,8721,40,4971,63,5451,67,205

Tejas Networks Ltd Shareholding Pattern Chart

No. of Tejas Networks Ltd Shareholders

Tejas Networks Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India Small Cap Fund57636971.14501.27
Edelweiss Small Cap Fund4214881.2236.66
Bank of India Small Cap Fund1180001.2110.26
Edelweiss Multi Cap Fund1069090.699.3
Nippon India Nifty Smallcap 250 Index Fund496840.454.32
Bank of India Mid & Small Cap Equity & Debt Fund430000.633.74
Motilal Oswal Nifty Smallcap 250 Index Fund310490.452.7
Axis Nifty Smallcap 50 Index Fund309031.342.69
SBI Nifty Smallcap 250 Index Fund243710.452.12
Aditya Birla Sun Life Nifty Smallcap 50 Index Fund208411.351.81

Tejas Networks Ltd ROCE Trend

Tejas Networks Ltd EPS Trend

Tejas Networks Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-2.46-5.974.05-25.7616.13
Diluted EPS (Rs.)-2.46-5.973.99-25.7615.39
Cash EPS (Rs.)5.011.199.29-16.7622.44
Book Value[Excl.RevalReserv]/Share (Rs.)173.21163.83117.52113.21138.99
Book Value[Incl.RevalReserv]/Share (Rs.)173.21163.83117.52113.21138.99
Revenue From Operations / Share (Rs.)53.5846.7354.5640.9094.78
PBDIT / Share (Rs.)5.54-3.158.12-5.6324.52
PBIT / Share (Rs.)-1.60-9.672.72-13.7017.58
PBT / Share (Rs.)-2.48-9.942.33-14.5115.79
Net Profit / Share (Rs.)-2.12-5.323.89-24.8315.50
NP After MI And SOA / Share (Rs.)-2.12-5.323.89-24.8315.50
PBDIT Margin (%)10.33-6.7414.87-13.7725.86
PBIT Margin (%)-2.98-20.694.97-33.5018.55
PBT Margin (%)-4.63-21.274.27-35.4816.66
Net Profit Margin (%)-3.95-11.387.12-60.7116.35
NP After MI And SOA Margin (%)-3.95-11.387.12-60.7116.35
Return on Networth / Equity (%)-1.22-3.243.30-21.9311.15
Return on Capital Employeed (%)-0.86-5.862.27-11.8512.63
Return On Assets (%)-1.01-2.972.86-19.109.28
Asset Turnover Ratio (%)0.310.320.410.270.61
Current Ratio (X)6.2610.456.076.914.64
Quick Ratio (X)4.748.794.735.083.95
Inventory Turnover Ratio (X)1.171.181.150.932.49
Interest Coverage Ratio (X)6.25-11.6521.17-6.9713.70
Interest Coverage Ratio (Post Tax) (X)-1.40-18.6611.15-29.729.66
Enterprise Value (Cr.)9229.624658.931319.40160.441503.18
EV / Net Operating Revenue (X)10.048.462.510.411.67
EV / EBITDA (X)97.10-125.3716.84-2.986.45
MarketCap / Net Operating Revenue (X)10.849.092.920.771.81
Price / BV (X)3.352.591.360.281.23
Price / Net Operating Revenue (X)10.849.092.920.771.81
EarningsYield0.00-0.010.02-0.780.09

Tejas Networks Ltd Profitability Ratios (%)

Tejas Networks Ltd Liquidity Ratios

Tejas Networks Ltd Liquidity Ratios (%)

Tejas Networks Ltd Interest Coverage Ratios (X)

Tejas Networks Ltd Valuation Ratios

Fair Value / Intrinsic Value of Tejas Networks Ltd

Fair Value: ₹43.87

The stock is overvalued by 94.25% compared to the current price ₹763

*Investments are subject to market risks

Strength and Weakness of Tejas Networks Ltd

StrengthWeakness
  1. The company has higher reserves (1,013.62 cr) compared to borrowings (10.92 cr), indicating strong financial stability.
  1. The stock is trading at a high valuation with an average P/B ratio of -0.93 and average Dividend Yield of -6.73%.
  2. The stock has a low average ROCE of 4.33%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 366.58, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 368.83, which may not be favorable.
  5. The company has not shown consistent growth in sales (532.46) and profit (-21.77).

Should I Buy Tejas Networks Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Tejas Networks Ltd:
    1. Net Profit Margin: -3.95%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: -0.86% (Industry Average ROCE: 1.26%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): -1.40
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 4.74
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✓ Stock P/E of N/A (Industry average Stock P/E: 17.13)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✗ Total Debt / Equity: N/A
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Tejas Networks Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE