Tata Group telecom stock rallies on strong buying, higher trading volumes and a Rs 1,537 crore BSNL 4G order-related development
Tejas Networks share price soared by 9.17% on Friday and extended the stock's winning run to four straight days on strong buying interest in the Tata Group telecom stock.
The sharp rise was accompanied by a significant increase in trading activity. Around 2 crore equity shares of Tejas Networks changed hands across stock exchanges, compared to a one-week average volume of about 1 crore shares and a one-month average of about 39 lakh shares.
The stock has risen in seven of the last eight trading sessions, up nearly 23%. After Friday’s rally, Tejas Networks shares were only about 3.8 percent below their 52-week high of Rs 644.75 on 19 June 2026.
TCS Letter of Intent boosts Sentiment
The share rally of Tejas Networks was fueled by the news on the 1st of July, 2015 that Tata Consultancy Services (TCS) had received a Letter of Intent (LOI).
Tejas Networks said in August that the LOI is related to the supply of Radio Access Network (RAN) equipment, accessories, and installation materials for Bharat Sanchar Nigam Limited (BSNL) 4G mobile network.
The order covers 18,685 sites and is valued at Rs 1,537 crore.
TCS will issue a formal and detailed Purchase Order in due course, which will confirm the completion of the project.
The development has attracted investor attention because it could have an impact on Tejas Networks’ order book and future revenue visibility.
Rs 1,537 Crore LOI Nearly Doubles Order Book
At the end of Q1FY27, Tejas Networks had an order book of around Rs 1,529 crore. This new LOI (Rs 1,537 crore) is therefore very significant with reference to the company’s existing backlog.
The company is also waiting for an additional expansion order of around 26,000 more 4G sites using its RAN systems under a parallel BSNL rollout plan, according to its investor presentations.
Any further order from that expansion would help to raise the company’s visibility and its value for investors in its stock.
Tejas Networks Stock Performance
Tejas Networks has been on the rise in a number of periods.
The shares have gained about 36 percent year-on-year as of late. But the stock is still well below its level two years ago and is down about 53% over the two years.
Tejas Networks shares are up more than 66% in five years, showing the share volatility of the stock (and its recent recovery).
Technical Outlook
From a technical point of view, Tejas Networks has been trading in the Rs 532-Rs 577 range for the last five trading sessions. Friday’s move above that range and the high volume indicate some short-term momentum.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said the stock’s technical indicators were showing signs of strengthening bullish momentum.
As Shah said, the Relative Strength Index (RSI) is rising while the Average Directional Index (ADX) has begun to move higher, indicating that trend strength is improving. The growing MACD histogram bars and the MACD line above the zero line are also supporting the bullish stance.
The immediate support zone for Tejas Networks is around Rs 570-Rs 565 according to Shah. As long as the stock is holding above this zone, the current pullback could extend further in the near term.
Stock Nears 52-Week High
The combination of high volumes, improving technical indicators and the Rs 1,537 crore LOI has brought Tejas Networks back into focus among market participants.
At 1:30 PM on Friday, shares of Tejas Networks were up 8.39% to Rs 615.35 on the BSE.
But investors might want to keep track of TCS’ purchase order, the future of the additional BSNL 4G rollout, and whether the stock can stay above its near-term support level.
Comments
Please to leave a comment on this article.