After a 40% increase in only two days, should you buy, sell, or retain Tejas Network shares?

Tejas Network’s current share price: Thanks to some excellent quarterly results, Tejas Network Ltd. shares increased 20% on Monday, extending their winning streak to 40% in only two trading days. Tejas Networks Q4 results, powered by BSNL’s 4G project performance, topped analyst expectations for revenue and profit, according to analysts.

According to Emkay Global, Tejas Network stands to gain from the government’s focus on homegrown manufacturing, the PLI program, and significant investments in BSNL, BharatNet, and the railroads. Additionally, it stands to benefit from a worldwide shift away from Chinese telecom equipment and references from TCom and TCS, which might bring in new business;

Based on BSNL and Bharatnet’s performance, this brokerage anticipates Tejas Network’s FY25E revenue to be four times that of FY24.

Because our sales projection was exceeded, we increased revenue by 6%, or 7% for FY25E and FY26E. On the margin beat, we also increased our EBITDA margin by 150–10 basis points. We update our DCF methodology-based target price to Rs 1,100 per share from Rs 975 previously. We keep our Buy recommendation,” it said.

Tejas Networks declared a profit of Rs 147 crore for the fourth quarter, compared to a loss of Rs 11.5 crore in the same period the previous year, indicating that the company had earned a profit. This company’s revenue increased dramatically to Rs 1,326.90 crore from Rs 299.30 crore YoY. There were 8,221 crore orders in its book. According to the firm, it has increased the amount of 4G/5G RAN shipments to BSNL and supplied a significant number of IP/MPLS routers for the backhaul network. In Q4, the business received 22 patents.

Tejas Network did well, according to Arihant Capital Markets, with growth coming from both cellular and wireline companies, among other product categories.

“The firm is in a strong position to take advantage of future prospects like BSNL’s 4G/5G rollout, Bharat Net Phase 3, private telco broadband expansions, and utility network improvements in India and beyond, with an order book valued at Rs 8,200 crore. The company’s long-term objective moving forward is to sustain historical margin levels over time, according to the brokerage.