Tata Group Share Price: A Remarkable Surge Amidst the Pandemic
π The share price of Tejas Networks, a telecom equipment maker and a part of the Tata Group, has witnessed a staggering increase during the COVID-19 pandemic. From Rs. 35.40 on April 3, 2020, it has soared to Rs. 862.30, marking a phenomenal growth of more than 2,336% in just three and a half years.
π Tejas Networks’ shareholders have reaped significant profits, with the company delivering a remarkable return of 69% in just 11 months this year. Leading brokerage firm MK Global has recommended investing in Tejas Networks based on its robust business prospects.
π° As of the end of September quarter, Tejas Networks had an order book of approximately Rs. 9,270 crore. The company is expected to fulfill orders worth Rs. 29,200 crore from the fiscal year 2024 to 2028, and there is potential for even larger orders in the coming days.
π‘ With the government focusing on domestic production, Tejas Networks stands to benefit from schemes like PLI (Production-Linked Incentive), BSNL (Bharat Sanchar Nigam Limited), BharatNet, and more.
π In addition to its cost advantage compared to competitors, Tejas Networks’ acquisition of Sankhya Labs for wireless solutions, CEO Anand Aatre’s 35 years of American experience, and collaboration opportunities with other Tata companies are expected to further boost its business.
π‘ Furthermore, the Tata Group’s entry into the semiconductor industry could provide additional support to Tejas Networks’ business. According to brokerage firms, the company’s revenue in the fiscal year 2025 could be five times higher than that of 2024.
π Taking into account all these factors, leading brokerage firm MK Global has initiated coverage on Tejas Networks with a target price of Rs. 1,050, along with a buy rating.
π The performance of Tejas Networks’ shares has been exceptional. Trading at Rs. 510.05 on January 30, 2023, the stock witnessed a surge of over 84% in just nine months, reaching a record high of Rs. 939 on October 18, 2023. Currently, the stock is trading around 8% below its peak. However, according to brokerage firms, the share has the potential to surpass its previous high.
In Short, amidst the COVID-19 pandemic, Tejas Networks, a part of the Tata Group, has emerged as a shining star in the stock market. With its strong fundamentals, potential for large orders, and strategic advantages, Tejas Networks’ shareholders have experienced substantial returns, making it an attractive investment option for investors.
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