Edelweiss is bullish on Tejas Networks has recommended buy rating on the stock with a target price of Rs 530 in its research report dated March 27, 2018.
Edelweiss' research report on Tejas Networks
Tejas Networks (Tejas) has informed stock exchanges that its FY18 revenue is likely to dip YoY versus earlier 5% growth guidance. The company attributed the guidance change to delays in receiving certain large orders. However, it highlighted that order pipeline remains healthy and the company is set for strong revenue and profitability spurt in FY19.
Outlook
We expect Tejas to sustain its growth momentum riding expanding product portfolio and expansion in emerging geographies. Moreover, the stock trades at attractive 16.0x FY20E EPS, considering strong revenue & earnings growth and high return ratios. We maintain ‘BUY/Sector Outperformer’ recommendation/rating with target price of INR 530 (23x FY20E EPS).
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