Rs 64 to Rs 839 in three years: This Tata Group stock clocked losses in six of seven quarters

Shares of Tejas Networks Ltd have turned into multibagger in the last three years. The Tata Group stock, which closed at Rs 63.85 on August 28, 2020 ended at Rs 839.60 on BSE on August 28, 2023, delivering 1215% returns in three years. During a period of two years and one year, the stock climbed 126.52% and 37%, respectively. In comparison, Sensex has zoomed 65% in three years. The stock of the optical and data networking products hit a yearly low of Rs 510.05 on January 1, 2023 and a record high of Rs 893 on July 20, 2023.  

In the last session, Tejas Networks shares ended at Rs 839.60 on BSE. In the current session, the stock fell 0.48% to Rs 835.60. Total 0.15 lakh shares of the firm changed hands amounting to a turnover of Rs 1.24 crore on BSE. Market cap of the Tata Group firm stood at Rs 14,173 crore.  

ALSO READ: Rs 49 to Rs 813: This railway stock turned into a multibagger in three years; trading in overbought zone

In terms of technicals, the relative strength index (RSI) of the Tejas Networks stock stands at 56.4, signaling it's trading neither in the overbought not in the oversold zone. Tejas Networks shares have a beta of 1.1, indicating average volatility in a year. Tejas Networks shares are trading higher than the 20 day, 50 day and 200 day but lower than the 5 day and 10 day moving averages.  

The Tata Group firm reported a widening of loss to Rs 26.29 crore by 296% in the June 2023 quarter compared to Rs 6.64 crore loss in the corresponding period last year. However, revenue from operations climbed 43.56 per cent to Rs 207.37 crore in the first quarter of current fiscal, compared to Rs 144.45 crore in the year-ago period.  

ALSO READ: Rs 29 to Rs 135: This railway stock turned into a multibagger in two years; trading in overbought zone

The firm’s performance in terms of net profit has not been impressive since December 2021. Of last seven quarters, the stock has incurred losses in six.  

Here’s a look at what analysts said on the outlook of the stock.  

Gaurav Bissa, VP, InCred Equities said, "Tejas Networks has seen consistent upside from Rs 40 levels since 2020. The stock is forming higher highs and higher lows on the weekly charts which suggests the trend remains strong. The stock has recently made a fresh swing high breakout and is currently hovering around the breakout retest levels. One can buy the stock for Rs 920 levels keeping the stop loss at Rs 770." 

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, "The stock has been overall in a strong trending mode and currently in consolidation near the Rs 850 zone and a decisive breach above Rs 880 zone shall trigger for a breakout for fresh further upward move with next target of 922 visible. The near-term support is at around Rs 830 levels with major support lying near Rs 785 zone of the significant 50EMA level." 

ALSO READ: Suzlon Energy shares slipped 6% off 52-week high; Rs 39 price target still likely?

Aditya Gaggar Director of Progressive Shares said, "Tata Group company Tejas Networks is in the primary uptrend with a higher top higher bottom formation. After consolidating over 8 months, the stock has given a breakout from the continuation pattern known as Rounding Bottom Formation with massive volumes. At present also, the stock is forming another pattern namely Pennant and Pole formation. Leading momentum indicator RSI has given a long-term trendline and recently, completed its pullback move as well. Trend following indicator ADX indicates the presence of a strong uptrend. As per the Rounding Bottom pattern, the target is Rs 1025." Abhijeet from Tips2trades said, "Tejas Networks is slightly bearish on the daily charts with strong resistance at Rs 868. A daily close above this resistance could lead to Rs 894 in the near term. Support will be at Rs 836." 

Tejas Networks 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 over  75 countries.