Tejas Networks Ltd.
ISIN: INE010J01012 • Market Cap: ₹9,067 Cr
The 5-Pillar Quality Audit for Tejas Networks Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (-49.6%), Return on Capital Employed (-30.6%), and equity compounding (—).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 1.42 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (-19.2%) and 3Y PAT CAGR (—).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of — vs PEG of — and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 53.3%, backed by 9.9% institutional ownership.
Key Fundamental Strengths
Consistent Market Standing (Mid Cap)
Established player in the Telecommunication sector with an overall fundamental quality score of 36/100.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: -30.6%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Elevated Financial Gearing (D/E: 1.42)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Topline Stagnation (3Y Sales CAGR: -19.2%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Quantitative Strategy Eligibility
Checking TEJASNET against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 36/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Telecommunication Sector Peer Comparison
Compare TEJASNET directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Tejas Networks Ltd. (TEJASNET)Current | 36/100 | ₹9,067 Cr | — | -30.6% | 1.42 | — |
| Vodafone Idea Ltd. (IDEA) | 65/100 | ₹1.52 Lakh Cr | 4.07 | -1.7% | -4.18 | View |
| Indus Towers Ltd. (INDUSTOWER) | 76/100 | ₹97,876 Cr | 13.68 | 18.4% | 0.02 | View |
| Bharti Hexacom Ltd. (BHARTIHEXA) | 79/100 | ₹79,950 Cr | 43.83 | 23.9% | 0.38 | View |
| Tata Communications Ltd. (TATACOMM) | 59/100 | ₹47,330 Cr | 50.04 | 17.0% | 3.14 | View |
| HFCL Ltd. (HFCL) | 62/100 | ₹34,668 Cr | 60.55 | 8.6% | 0.37 | View |
Frequently Asked Questions: Tejas Networks Ltd.
Q:What is the 5-Pillar Fundamental Score for Tejas Networks Ltd. (TEJASNET)?
Tejas Networks Ltd. has a RupeeTools Fundamental Score of 36/100, placing it in the 'Caution / Risky' category. Its pillar scores are: Profitability (23/100), Financial Health (55/100), Growth (20/100), Valuation (15/100), and Ownership Quality (68/100).
Q:Is TEJASNET fundamentally strong for long-term investment?
TEJASNET currently holds a moderate quality rating of 36/100. While it operates in the Telecommunication sector, investors should monitor its debt health before initiating long-term positions.
Q:Does TEJASNET pass the Coffee Can Investing filter?
No. TEJASNET does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does TEJASNET compare against other Telecommunication peers?
Within India's Telecommunication sector, TEJASNET trades at a P/E of — and generates an ROCE of -30.6%. Compare its 5-Pillar score of 36/100 against top sector peers like Vodafone Idea Ltd. (65/100), Indus Towers Ltd. (76/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.