Shares of telecom equipment maker Tejas Networks jumped as much as 5.6 per cent to Rs 275.20 on solid Q1 after dismal Q4. Q1 consolidated PAT stood at Rs 45.03 crore, up two-folds from year-ago.
“Solid performance following a dismal show in Q4, 2018,” says Nomura's Anirudh Gangahar. The brokerage has “buy” rating on the stock, with a target price of Rs 410.
Nomura says strong showing in Q1 suggests Tejas' earnings growth prospects are intact and Q4 performance was a blip. It adds that the stock price is likely to rally ahead of earnings conference call later in the day.
As of Monday, Tejas Networks’ stock had fallen 34.1 per cent this year. About 700,950 shares changed hands, 6x the 30-day average volume.