Tejas Networks

Tejas Networks showed improvements in all front namely; revenue growth, profitability, order book as well as free cash flows in Q2. Although marginal enhancements in the financials, but they were on account of India private and International business. Company’s medium term strategy to diversify away from Governments Bharat Net projects finally seems to show some fruitful results after continued underperformance over the past 2 years. We believe revenues as well as profitability will pick up pace Q4 onwards and opine investors to BUY on Dips from current levels.