Worst performing Tata Group stock in last 12 months extends losses despite NCC partnership

Shares of Tejas Networks Ltd. fell another 1.5% on Thursday, October 23, extending its losses after the fall it witnessed on Monday, in response to its September quarter results.

In a separate exchange filing, the company said it has started shipping its IP-MPLS routers and management system for the Madhya Pradesh, Dadra Nagar Haveli, Daman and Diu and Uttarakhand packages, as part of the BharatNet Phase III project.

The company is partnering with NCC to upgrade the existing middle-mile broadband infrastructure in these states from linear to ring topology across 30,841 GPs and 411 block locations by using IP-MPLS technology, it said.

The Central government's BharatNet programme aims to extend high-speed broadband connectivity to every village in the country.

The creation of a robust, reliable and scalable middle-mile network for BharatNet is critical to ensuring high-quality broadband to every rural citizen, said Manoj Penmetcha, director (projects) NCC, said. "

"As an award-winning gigabit passive optical network (GPON) equipment supplier for the earlier phases of the BharatNet project, we have a deep understanding of the current BharatNet network architecture and its implementation complexities, giving us a head start in achieving the stringent stakeholder objectives for this phase," Sanjay Malik, chief strategy and business officer at Tejas Networks, said.

Shares of Tejas Networks are down 1.5% on Thursday, having given up initial gains. The stock has declined in three out of the last four trading sessions, having seen a 1.7% advance during the Mahurat Trading session on Tuesday.

Tejas Networks recently reported its third straight quarterly loss, mostly led by lower revenue and provisions due to the manufacturing process losses, warranty and inventory obsolescence.

Tejas Networks is the worst performing stock on the Nifty Smallcap index, having declined 55% so far since the Nifty 50 index hit a record high on September 27, 2024.

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