Tejas Networks: Strong growth prospects, premium valuations

Prices could have been more attractive, due to weak financials

Tejas Networks, India’s second-largest telecom networking product maker, will be banking on the robust growth prospects of the $600-million Indian optical networking sector to power its revenues. The Indian market, which contributes 63 per cent of its revenues, is expected to grow at an annual rate of 14 per cent to hit $869 million by 2020. 

The triggers for the higher growth rate is the exponential rise in data consumption and government initiatives to increase broadband access in the country. Given that less than 20 per cent of cell phone sites in India are connected by fibre and as data demand