Multibagger Alert: This top multibagger from the telecom service sector gained 313% in a year!
Tejas Networks Ltd has been a lottery ticket for its shareholders.
In the trailing twelve months’ time, this multibagger stock Tejas Networks Ltd, a global telecom equipment company, has risen from Rs 108.05 to Rs 447.35 as of 30 November 2021, thereby quadrupling its shareholders’ wealth. The stock witnessed a rising trend till July end, where it was trading near the levels of Rs 186-200. Later this multibagger stock witnessed a sharp rally in August and September, where it crossed the Rs 400 mark. Tejas Networks was a buzzing stock then, since it had doubled in just a month.
The sharp rally in the multibagger stock was driven by the trending news of Tata Sons acquiring a controlling stake in the company. Panatone Finvest Ltd, a subsidiary of Tata Sons acquired a stake of 37.37% in the company.
The company reported a strong performance in Q2 FY22. The net sales stood at Rs 172.8 crore which witnessed a QoQ increase of nearly 20% and a YoY growth of 57%. The international segment of the company which contributed 41% to revenues, witnessed a robust performance in the quarter. The EBITDA stood at Rs 18.34 crore which grew by 4.15% on a sequential basis and 97% on a YoY basis. The net profit stood at Rs 3.66 crore which declined by about 51% on a QoQ basis and 19% on a YoY basis. Going ahead, the management expects the Indian private segment, which currently contributes 46% to revenues, would be the fastest-growing segment in the coming quarters. In September end, the company was selected by Airtel for optical network expansion.
Tejas Networks design, develop, manufacture and sell high-performance telecom and networking products, which are used to build high-speed communication networks. The stock closed at Rs 447.35 as of 30 November 2021 on the BSE. It has a 52-week high and low of Rs 570.20 and Rs 101.45, respectively.
About the Author
Start Investing Now!
Open Free Demat Account in 5 mins