Tejas Networks Shares: SEBI Analyst Warns Of Pullback Risk At This Level

Analyst notes near-term technical volatility, with support at ₹467-₹500 and resistance at ₹647.

Tejas Networks' stock gained 4% on Wednesday. SEBI-registered analyst A&Y Market Research attributed the rally to positive market sentiment and the company's key developments, including securing significant orders and strategic partnerships.  

Technical Outlook 

Despite the recent stock rally, technical indicators portray a mixed to mildly bearish trend with bearish daily moving averages and KST readings. However, some longer-term signals like the monthly Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) are bullish. This suggests caution with some volatility expected in near-term trading, according to A&Y Market Research.

Trading Strategy

Support has been identified at ₹467-₹500, with resistance at ₹647. TRADING 

They advised waiting for a price reaction at either the support zone or the resistance zone. If the stock holds above ₹467-₹500, a potential bounce or reversal is likely and it may see an increase in buying interest. 

On the other hand, if Tejas Network stock hits resistance at ₹647, it could face a potential rejection or pullback and may see intense selling pressure.

Business Developments 

Tejas Networks secured an order worth ₹1,526 crore from BSNL for supplying and maintaining 4G mobile network equipment at over 18,600 sites, which positively impacted the stock earlier in 2025. 

The company reported Q1 FY26 results with a revenue decline but maintained an order book of Rs 1,241 crore, showing order pipeline strength despite short-term revenue recognition challenges. Strategic partnerships with Rakuten Symphony, Intel, and mobile phone manufacturers are expected to support growth, they noted. 

Valuation and Fundamentals 

The company is currently trading at a relatively high P/E ratio (~59) with a price-to-book ratio of about 2.8, reflecting market expectations of growth despite recent quarterly losses. 

Tejas Networks' stock is gaining momentum due to key order wins, incentives, and partnerships; however, they cautioned that investors should be mindful of technical indicators and recent revenue performance challenges. The company's strong order book and innovation pipeline provide long-term growth potential amid near-term volatility. 

Tejas Networks’ shares have declined 48% year-to-date (YTD).

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