Citi has initiated coverage on newly listed Tejas Networks with a buy call and a target of Rs 435 which implies a near 25 percent upside.
In an interview to CNBC-TV18, Sanjay Nayak, MD & CEO of Tejas Networks spoke about the latest happenings in the company.
We are in an industry where there is a lot of data demand which is growing both in India and abroad, said Nayak.
As we have higher data consumption, we need higher capacity optical transmission network for which we provide the equipments, he added.
"Topline growth is something that is achievable at 20 percent per year level," he said.
We are a research and development (R&D) driven company; the R&D investments and the sales investments which we make this year will play out over the next few years, said Nayak.
He further said that in the last two years revenues doubled from Rs 400 crore to Rs 800 crore but operating expenses did not increase proportionately. So we still have a couple of years left in terms of getting to the right scale of the investment that we are currently making in R&D and sales.
Therefore, our EBITDA and bottomline will grew faster than the topline for the next few years, he added.Watch accompanying video for more details.