InvestorQ : Why did Tejas Networks stock rally so sharply on 10 August?
Ria Jain made post

Why did Tejas Networks stock rally so sharply on 10 August?

Answer
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Anu Biswas answered.
2 months ago


Tejas Networks was locked in 5% upper circuit on 10 August after the company bagged order worth Rs.66 crore for Indian Defence Network Project from Larsen & Toubro Constructions. Under the deal, Tejas will supply GPON based fiber-broadband products and high-performance Metro Ethernet switches for the project.

This also coincides with the government’s recent plans to put an embargo on the imports of nearly 101 items of defence imports so as to give preference to local companies as part of the Atma Nirbhar plan.

Of course, the company was loss making in the Mar-20 quarter. Tejas Networks had reported a net loss of Rs.126.53 crore in the Mar-20 quarter as compared to reporting a net profit of Rs.35.89 crore in the Mar-19 quarter. Even net sales had tumbled by 33%. Tejas specializes in optical and data networking products.