Tejas Networks Ltd. share price target

Tejas Networks reported a beat on our revenue and margin estimates, led by
BSNL’s 4G project execution. We see Tejas benefits chiefly from: 1) GoI
emphasis on domestic manufacturing and the PLI scheme

IPO Note - Tejas Network Limited Issue Open: June 14 - June 16 2017, Price Band: Rs. 250 - 257

Tejas Networks Ltd provides a good investment option on the capex by communications companies in India and international regions to feed the data hungry markets. It is the second largest optical networking products company in India with ~15% market share. The optical equipment capex in India is expected to grow at CAGR of 14.2% over 2014-2020 to US$869mn in 2020. Further, company's focus on other emerging markets should enable it to deliver strong growth. While adjusted PER of 25x FY17 is not cheap we believe that the company would deliver strong growth over the next 3-5 years. Thus, we believe...

overhauling and expansion is expected to benefit players like Tejas. Additionally, the company is expected to benefit from the Pre - Issue Shareholding Pattern restrictions put in by the government for the indigenization so as to...

Tejas Networks Ltd (TNL) is an optical and data networking products company. It designs, develops and sells products to telecommunications & internet service providers, utility companies, defense companies and government entities in India and over 60 countries. TNL derives 63% of its revenues from domestic markets, while rest comes fr..

Incorporated in year 2000, Tejas Networks Ltd is Bangalore based optical and data networking Products Company. The company is a professionally managed company and does not have an identifiable promoter either in terms of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (SEBI ICDR Regulations),or in terms of the Companies Act, 2013. Tejas designs, develops and sells products to telecommunications service providers, internet service providers, utility companies, defense companies and government entities in India and over 60 countries. These products are used in building high-speed communication...

They are an India-based optical and data networking products company with customers in over 60 countries. They design, develop and sell high-performance and cost-competitive products to telecommunications service providers, internet service providers, utility companies, defense companies and government entities (collectively, Communication Service Providers). Their products are used to build high-speed communication networks that carry voice, data and video traffic from fixed line, mobile and broadband networks over optical fibre. Their products utilise programmable software-defined hardware architecture with a common software code-base that delivers an app-like ease of development and upgrades of new features and technology standards. Currently, India is their largest geographic segment (in terms of revenue) and they are well-positioned to take advantage of the growth opportunities arising out of the Digital India and the Make-in-India programs of the Indian Government. They have invested heavily in research and development in order to grow...

Leading Indian player in optical networking equipment market Tejas has 15% market share in the Indian optical networking equipment market. The company is the second largest and only Indian company present in Top 10 in India in a segment, which is dominated by global giants like Huawei, Nokia, ECI Telecom, ZTE, etc. The key clientele for Tejas includes BBNL, BSNL, PGCIL & RailTel among Indian PSUs. Similarly, it also serves private telcos like Airtel, Idea and Aircel among others. The company has a sticky clientele base and generated 88% of...

Tejas Networks Ltd (TNL) is an India-based optical and data networking products company with customers in over 60 countries. TNL designs, develops and sell high-performance and cost-competitive products to telecommunications service providers, internet service providers, utility companies, defence companies and government entities (collectively, Communication Service Providers). Its products are used to build high-speed communication networks that carry voice, data and video traffic from fixed line, mobile and broadband networks over optical fibre. TNL's products utilize programmable software-defined hardware architecture with a common software code-base that delivers an app-like ease of development and upgrades of new features and technology standards. Currently, India is its largest geographic segment (in terms of revenue) and the company is well-positioned to take advantage of...