Tejas Networks hit an upper circuit limit of 10% at Rs 104.55 after the company said it entered into a strategic partnership with Bharat Electronics.
Tejas Networks announced on Tuesday that it has signed a memorandum of understanding (MoU) with Bharat Electronics, India's premier defence solution provider. The MoU envisages strategic cooperation, covering the use of Tejas' optical transmission, access and data-switching products for domestic & export markets by jointly capitalising onthe emerging opportunities in defence communication, strategic communication, smart city, homeland security, metroand state network projectsunder the "Make-in-India" program.Tejas Networks has recently received purchase orders totalling over Rs 60 crore from BEL, towards supply and services of its optical and data networking equipment for various projects won by BEL, which includes the Kerala Fibre Optic Network, defence communication networks and smart city projects.
Shares of Tejas Networks soared 11.40% in two trading sessions to its current market price of Rs 104.55 from its recent closing low of Rs 93.85 on Friday, 22 November 2019.
Meanwhile, the S&P BSE Sensex was up 52 points or 0.13% to 40,941.06.
The stock was trading in range of Rs 94.35 to Rs 104.55 so far during the day.
On the technical front, the stock's RSI (relative strength index) stood at 69.60. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was currently trading above its 50-day moving average (DMA) placed at Rs 81.64, but it was still below its 200 DMA placed at Rs 131.82 respectively.
Tejas Networks reported a consolidated net loss of Rs 4.38 crore in Q2 September 2019 compared with a net profit of Rs 33.48 crore in Q2 September 2018. Net sales tumbled 57.8% to Rs 87.42 crore in Q2 September 2019 from Rs 207.03 crore in Q2 September 2018.
Tejas Networks is a provider of carrier grade communications equipment and solutions for telecom industry. The firm is a supplier of optical networking equipment to telecom carriers across the world. Its equipment is used by various service providers to build broadband networks.
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