Tuesday, June 13, 2017
Strong Research, 330+ Patents Makes Tejas Networks IPO Attractive but Risks Abound
Bangalore-based Tejas Networks, which makes products for optical fibre and data networks, may be an attractive bet for a long term investor willing to ride out a few potential risks to the stock. While the company’s continuous efforts on research & development and investments in technological innovation are at the core of its strength, the same R&D spends and breakthroughs in technology may pose significant risks to the its business going ahead. Here’s are the top factors one must consider before buying into the Tejas Networks’ IPO:
Tejas has a strong focus on innovation, with 313 of its total 607 employees engaged in research and development, primarily aimed at expanding high growth segment product portfolios. The company outsources its manufacturing to electronic component manufacturers. It also has a decent intellectual property portfolio with 326 patent applications and 47 granted patents.
Further, Tejas Networks is also expected to benefit a lot from the government’s preference for sourcing from domestic suppliers in the push for Make in India and Digital India, and also due to security implications involved in using electronic network communication products.