Tata Group stock trading at discount of upto 48% despite strong Q3 result to keep an eye on

According to the source, India’s telecom equipment and accessories sector is poised for robust growth, projected to reach a market size of $69.62 billion by 2029, with a CAGR of 9.40% from 2025. The industry supports 1.72 billion subscribers and contributes 6.5% to the GDP, reflecting its critical role in the economy.

Price movement

With a market capitalization of Rs 13,599.93 crore, the shares of Tejas Networks Ltd were trading at Rs 773.80 per share, decreasing around 0.66 percent as compared to the previous closing price of Rs 778.95 apiece.

Matter Explanation

Tejas Networks Ltd reported exceptional results in Q3FY25, revenue decreased by 6 percent on a quarter-on-quarter basis from Rs. 2,811 crore in Q2FY25 to Rs. 2,642 crore in Q3FY25. Further, revenue zoomed by 371 percent year on year, from Rs 560 crore in Q3FY24 to Rs. 2,642 crore in Q3FY25.

The company’s net profit tumbled by 39 percent on a quarter-on-quarter basis, from Rs. 275 crore in Q3FY25 to Rs. 166 crore in Q3FY25. Further, net profit magnified significantly year on year from a loss of Rs 45 crore in Q3FY24 to a profit of Rs. 166 crore in Q3FY25. 

Trading at discount

The company hit its 52-week or all-time high in June 2024 at Rs.1,495 apiece and, comparing the same with the current stock price prevailing in the market, there is a discount of approximately 48 percent.

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Business update

In Q3, the company completed RAN supplies for over 27,000 sites, bringing the total to 86,000+ for BSNL’s 4G/5G network. They developed radios across five bands (700 MHz to 2.6 GHz) and initiated POCs with domestic and international operators for future 4G/5G orders.

The wireline business secured a 3-year contract with Vodafone Idea for 4G/5G mobile backhaul. It was also selected as a supplier for BharatNet Last Mile Connectivity in Tamil Nadu and received orders for US network modernization and mobile backhaul expansion in Asia, signaling strong future growth.

Market Outlook

The market outlook highlights continued global investments in fixed and mobile technologies, driven by cloud enterprise, 4G/5G deployment cycles, broadband expansion, utility network modernization, and AI infrastructure. The strategy focuses on developing advanced 5G RAN equipment and evolving wireline technology for higher speeds and capacities.

Upcoming Projects and Opportunities
The company anticipates converting large opportunities, including BSNL’s 4G expansion, 5G upgrades, and BharatNet Phase 3 in Q4 FY25 and Q1 FY26. Focus areas include utility investments, WDM backbone expansion, ongoing POCs for private 5G, and significant US market opportunities in network modernization and broadband expansion.

Management comments

The company’s management remains optimistic about future growth, driven by strong business drivers and ongoing projects. Despite challenges in the government sector and international business, they are confident in their strategic positioning and product offerings within the evolving telecommunications landscape.

Company Profile

Tejas Networks Ltd develops and produces wireline and wireless networking products, with an emphasis on technology, innovation, and R&D. TNL carrier-class solutions are utilized by telecom service providers, utilities, governments, and defense networks in over 75 countries.

Written by Abhishek Singh

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