These two beaten-down Tata Group stocks freeze at 5% upper circuit

Nelco was locked in the upper circuit at Rs 637.10 and Tejas Networks was frozen at Rs 384.90 on the BSE.

Shares of two Tata Group companies--Nelco and Tejas Network-- were locked in the 5 per cent upper circuit on Wednesday after correcting up to 37 per cent from their respective 52-week highs on the BSE. There were only buyers seen on both these counters on the BSE and NSE. In comparison, at 12:00 pm, the S&P BSE Sensex was 1.27 per cent higher at 54,099 points. 

Nelco was frozen in the upper circuit at Rs 637.10, while Tejas Networks was locked up 5 at Rs 384.90 on the BSE. Nelco had hit a 52-week high of Rs 968.55 on October 19, 2021, and the latter's same level of Rs 570.20 was touched on October 5, 2021.

Nelco is a leading satellite communication (SatCom or VSAT) service provider in India, providing highly reliable data connectivity solutions across the country mainly for the enterprise sector. The purpose of the company is to bring the benefits of the digital revolution to unserved and under-served customers using satellite communication.

Nelco currently holds licenses for commercial VSAT communication services, category A ISP services license on commercial basis issued by the Department of Telecommunications (DOT), the In-flight & Maritime Communication (IFMC) authorization from DOT and the license for the National Long Distance (NLD) services.

Tejas is a leading company in India’s optical networking market. The company’s products have been deployed by leading telecommunications operators in India, such as Bharti Airtel, Reliance Jio, Vodafone-Idea, Tata Communications, Tata Tele services, Bharat Sanchar Nigam (BSNL), and many others.

Further, large public sector utilities such as Power Grid Corporation of India, RailTel Corporation of India, Indian Oil Corporation, Oil India, Delhi Metro, and Gas Authority of India have been the company’s customers for many years.

On 29 July 2021, Tata Sons, through its subsidiary Panatone Finvest, initiated an investment in Tejas Networks to buy a 43.35 per cent stake for Rs 1,884 crore through shares and warrants. As per December 2021, shareholding pattern, Panatone Finvest held 37.32 per cent stake in Tejas Networks.

Tejas Networks sees a very large opportunity in the telecom sector both in India and global markets with the new cycle of investments in 5G and fiber-based broadband rollouts.