Tejas Networks Surges 12% After NEC 5G Deal — Strategic Breakthrough or Short-Term Bounce?
Shares of Tejas Networks witnessed a sharp rally of over 12% in intraday trade after the company announced a strategic manufacturing agreement with Japan-based NEC Corporation to produce carrier-grade 5G massive MIMO radios. The development has triggered fresh optimism around the company’s positioning in next-generation telecom infrastructure and global 5G supply chains.
According to the regulatory filing, Tejas Networks will manufacture advanced massive MIMO radios for NEC, strengthening its presence in the fast-growing wireless equipment ecosystem. The collaboration is expected to accelerate innovation in 5G and upcoming 5G-Advanced technologies by combining Tejas Networks’ carrier-class product development capabilities with NEC’s global telecom reach.
Arnob Roy, Chief Operating Officer and Executive Director of Tejas Networks, highlighted that the partnership will help co-create leading-edge wireless solutions for global telecom operators. NEC’s Corporate Senior Vice President Masayuki Kayahara added that the agreement supports supply-chain diversification, aiming to build a resilient and flexible global telecom ecosystem amid evolving geopolitical and industry risks.
Tejas Networks, part of the Tata Group, designs high-performance wireline and wireless networking products used by telecom operators, utilities, defence organisations and government agencies across more than 75 countries. Its portfolio includes 4G and 5G RAN solutions, including advanced 32TR and 64TR massive MIMO radios aligned with 3GPP and O-RAN standards.
Market Guidance & Chanakya View
The NEC partnership is strategically significant because it positions Tejas Networks deeper into the global 5G hardware supply chain — an area where Indian telecom equipment makers are trying to gain scale. However, investors should differentiate between fundamental re-rating and news-driven momentum.
While the stock surged sharply, its longer-term price trend remains under pressure — down about 21% year-to-date, nearly 40% in six months and over 50% in one year. This suggests that the current rally may initially be sentiment-driven rather than a confirmed trend reversal.
From a technical standpoint, RSI near 35.6 indicates the stock is emerging from oversold territory, which can lead to sharp counter-trend bounces. If sustained buying continues, the news flow could act as a catalyst for short-term recovery. However, investors should watch for confirmation through volume expansion and follow-through price action rather than chasing spikes.
Key Stock Snapshot
Market Cap: Rs. 6,429 Cr
Current Price: Rs. 362
52 Week High / Low: Rs. 914 / Rs. 294
Book Value: Rs. 187
Dividend Yield: 0.72%
ROCE: 15.5%
ROE: 12.8%
Face Value: Rs. 10
RSI: 35.6
Chanakya Guidance:
The NEC partnership strengthens Tejas Networks’ long-term technology narrative, especially within the 5G and global telecom supply ecosystem. However, given the stock’s recent steep correction and ongoing volatility, investors may consider a wait-and-watch approach for confirmation of sustained trend reversal rather than aggressive buying solely based on headline news.
Quicklinks