InvestorQ : I am having small quantity of shares in Tejas Networks, which I had bought at higher price of Rs.220. Can I hold on after the encouraging fourth quarter results announced?
manisha Kolvenkar made post

I am having small quantity of shares in Tejas Networks, which I had bought at higher price of Rs.220. Can I hold on after the encouraging fourth quarter results announced?

Answer
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Mahima Roy answered.
1 year ago


How were the results like for Tejas

Tejas Networks, a key player in modems and telecom hardware, posted 9.2% growth in net profits for the fourth quarter ended March to Rs.35.9 crore. However, total income in the quarter jumped from Rs.112 crore to Rs.280 crore, a big leap in the last one year. For the full year, Tejas Networks reported 38% increase in net profits to Rs.138 crore.

Is the share worth holding on to?

The stock had touched a peak of Rs.355 but had corrected nearly 70% all the way down to Rs.115. At the current market price of Rs.187, the stock is valued at around 11-12 times historical EPS. In terms of valuations the stock certainly looks reasonably priced. Also, it operates in the niche telecom support segment where the value addition can be higher than the pure vanilla businesses. We don’t see too much risk in holding on to the stock.