Tejas Networks Share Price Movement Amid Recent Developments

Market Performance

Tejas Networks' share price rose 4.5% on March 17, reaching ₹689. This increase marked the end of a four-day decline. The Stock recorded over 1500% gains over 5 years despite it fell 54% from its peak.

Financial Incentive from the Ministry of Communications

The company received ₹123.45 crore as an incentive from the Ministry of Communications, Department of Telecommunications, under the Production Linked Incentive (PLI) Scheme for Telecom and Networking Products for 2023-24.

Company Overview

Tejas Networks designs and manufactures networking products for telecommunications service providers, internet service providers, utilities, defense, and government entities. The company operates in over 75 countries and is backed by the Tata Group, with Panatone Finvest, a subsidiary of Tata Sons, holding a majority stake.

Recent Business Developments

In the past quarter, Tejas Networks secured a three-year contract with Vodafone Idea to supply equipment for its 4G and 5G mobile backhaul network across India. Additionally, the company was selected as the broadband equipment supplier for the Tamil Nadu state-led BharatNet Last Mile Connectivity (LMC) project.

The company completed a proof of concept (PoC) and received initial purchase orders for a network modernization project in the United States. Furthermore, orders were received from an operator in Asia to expand their mobile backhaul network.

Future Prospects

Tejas Networks focuses on expanding its presence in the wireless and wireline segments. The wireless division is expected to benefit from BSNL's 4G network expansion and the potential upgrade to 5G. The company is also engaged in projects such as the Indian Railways' Kavach system, a collision avoidance technology, and private 5G applications for enterprises in India.

In the wireline sector, the company is targeting BharatNet Phase 3 initiatives and expanding DWDM backbone networks in the utilities sector. Additionally, it is pursuing Fibre-to-the-home (FTTH) and network modernization projects across the EMEA region and the Americas.

Summary

Tejas Networks' share price increased by 4.5%, ending a four-day decline, following the receipt of ₹123.45 crore under the PLI Scheme. The company continues securing new contracts in wireless and wireline segments, focusing on network expansion projects in India and internationally. Future growth prospects include significant infrastructure developments in telecommunications and networking technologies.