Buy Tejas Networks; target of Rs 1100: Emkay Global Financial

buy

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Emkay Global Financial's research report on Tejas Networks

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; 2) large spends on BSNL, BharatNet, and the Railways; 3) references from TCom and TCS, thus adding new clients; and 4) global move towards replacing Chinese telecom equipment. We expect FY25E revenue to be 4x FY24 revenue on BSNL and Bharatnet execution. We increase revenue by 6%/7% for FY25E/FY26E on account of the beat on our revenue estimate. We also raise our EBITDA margin by 150-10bps on the margin beat.

Outlook

We revise our TP to Rs1,100/share (21% upside) vs. Rs975 earlier, based on DCF methodology (WACC: 10.5%; Terminal growth rate: 6%). We retain our BUY rating.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Tejas Networks - 23042024 - emkay