Shares of Tejas Networks have been rocketing ever since the company posted its blockbuster results for the quarter ended March. The results also impressed the analysts at Emkay Research.

The Tejas Analysts: Santosh Sinha-led analyst team at Emkay maintained the “buy” rating for the stock raising the price target to ₹1,100 from ₹975.

The Tejas Thesis: The analysts said that the Tata Group company has outperformed their expectations in terms of revenue and margins. The company’s Q4 revenue beat Emkay’s estimates by 46%. The company’s profits were at ₹146 crore, while Emkay analysts estimated a loss of ₹2.5 crore for the March quarter. As per the brokerage, this outperformance was largely due to the successful execution of BSNL's 4G project.

See Also: Small Cap Tata Stock Falls 3% Despite Slimming Losses In Q4

Going forward the analysts talked abut several key factors that are expected to drive Tejas Networks’ growth:

• The Government of India’s emphasis on domestic manufacturing and the Production Linked Incentive (PLI) scheme are likely to be beneficial for the company.
• Significant investments are being made in BSNL, BharatNet, and the Railways, providing ample opportunities for revenue generation.
• Endorsements from prominent clients such as TCom and TCS are helping Tejas Networks expand its client base.
• The global trend towards replacing Chinese telecom equipment presents a favorable environment for Tejas Networks.

Price Action: Tejas Network’s share price was up 18.54% to trade at ₹1,075 in early trade on Tuesday.

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