Axis Capital has retained buy call on the stock, but slashed its price target to Rs 290 from Rs 320 earlier.
Tejas Networks shares hit fresh record low of Rs 186, down 13 percent intraday Thursday as Axis Capital cut its price target for the stock after weak December quarter earnings.
The stock was quoting at Rs 193.80, down Rs 19.60, or 9.18 percent on the BSE at 10:50 hours IST.
October-December was another very weak quarter for the company as revenue and operational income fell sharply YoY. Profit excluding tax gain was down for the quarter.
Profit after tax for the quarter grew by 9 percent year-on-year to Rs 32.84 crore, aided by tax gain of Rs 7.9 crore in Q3 against tax expenses of Rs 2.9 crore in same period last year.
Revenue from operations in Q3 dropped 19.8 percent to Rs 184.3 crore compared to year-ago, impacted by delay in government orders.
In the nine-month period ended December 2018 also, revenue declined 5.7 percent against company's guidance of 20 percent growth.
But Tejas Networks still maintains its guidance of 20 percent revenue growth and it expects working capital cycle to normalise by Q4.
At operating level, EBITDA (earnings before interest, tax, depreciation and amortisation) slipped 28 percent year-on-year to Rs 36.34 crore and margin contracted to 19.7 percent in Q3FY19 against 22.1 percent in Q3FY18.
Axis Capital has retained buy call on the stock, but slashed its price target to Rs 290 from Rs 320 earlier.
The research house said it likes like diversification away from the government business and remains watchful given the inconsistent performance in the past.
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