Shares of Tejas Networks fell on Friday, snapping their two-day uptrend. The stock slipped 4.17 per cent today to settle at Rs 611.40 over its previous close of Rs 638. Around 84,000 shares changed hands today on BSE, which was higher than the two-week average volume of 65,000 shares. Turnover on the counter stood at Rs 5.23 crore, commanding a market capitalisation (m-cap) of Rs 9,343.11 crore. There were 5,406 sell orders today against buy orders of 3,036 shares.
The telecom and networking products manufacturer narrowed its consolidated loss to Rs 10.88 crore in Q3 FY23 against a loss of Rs 24.30 crore in the corresponding period a year ago. Consolidated revenue zoomed 156 per cent year-on-year (YoY) to Rs 274.55 crore during the reporting quarter. The operating performance also was impressive with an EBITDA of Rs 8.01 crore in the last quarter against an EBITDA loss of Rs 28.3 crore in Q3 FY22.
Support on the counter could be seen at Rs 580, followed by Rs 550, Rs 540 and Rs 510 levels, technical analysts suggested. At today’s closing price of Rs 611.40, Tejas Networks traded 20.91 per cent lower from its 52-week high of Rs 773, hit on October 10 last year.
Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, “Tejas Networks has seen strong traction in the last couple of trading sessions and gained nearly 15 per cent in the week. Technically, the stock has also reversed from the oversold region and 200-SMA (Simple Moving Average) on the daily charts, indicating some strength for the time being. As far as levels are concerned, the immediate support is placed around the Rs 580-odd zone, followed by the sacrosanct support of 200-SMA placed near the Rs 550 zone. On the contrary, sustenance above Rs 600 could only bring new traction to the counter. Immediate resistance can be seen around the swing high of Rs 680-odd zone, breaching which the stock could re-enter its positive trajectory from a short to medium-term perspective.”
Ganesh Dongre – Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “Rs 510 could be considered a crucial support level for the stock and resistance would be seen at the Rs 750-775 zone. Investors could buy this stock on dip for a target price of Rs 750 in the upcoming weeks.”
AR Ramachandran from Tips2trades said, “Tejas Networks looks slightly overbought on the daily charts. Investors should book profits at current levels and wait for lower levels or support of Rs 540 to initiate fresh buy positions. Resistance will now be at Rs 645.”
The stock traded higher than 5-day, 20-, 50- and 200-day moving averages but lower than 100-day moving averages. The counter’s 14-day relative strength index (RSI) came at 61.14. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a negative price-to-equity (P/E) ratio of 251.67.
Tejas Networks has a one-year beta of 1.18, indicating high volatility on the counter.
The company produces optical and data networking products. It designs, develops and sells high-performance and cost-competitive networking products to telecommunications service providers, internet service providers, utilities, defence and government entities in more than 75 countries.
Meanwhile, Indian equity benchmarks fell sharply today, dragged by banks, financials, technology and pharma stocks. The 30-share BSE Sensex pack fell 317 points or 0.52 per cent to settle at 61,003; while the broader NSE Nifty index moved 92 points or 0.51 per cent lower to close at 17,944.
Also read: Adani Transmission shares hit 52-week low after S&P places ESG Rating under review
Also read: Midhani shares rise after defence firm inks 11 MoUs in Aero India 2023
