Vijay Kedia portfolio: On account of Afghanistan-Taliban crisis, Tejas Networks share price has been under huge selling pressure. After hitting 5 per cent lower circuit on Monday, the Vijay Kedia stock hit 5 per cent lower circuit on Tuesday as well. According to stock market experts, the stock is under selloff pressure due to the Afghanistan crisis as market is expecting huge hit in Tejas Networks business there after Ashraf Ghani’s resignation. They said that after the recent developments in Afghanistan, Tejas Networks multi-year contract to build Afghanistan’s high-capacity National Optical Transport Network has got jeopardized. They expected further selloff in the counter as Tejas Networks share price almost doubled after the sealing of this deal was announced in January 2021. However, Tejas Networks has issued clarification on having business exposure in Afghanistan.
Connecting this Tejas Networks share price tank with latest developments in Afghanistan; Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Tejas Networks share price is nosediving due to the recent developments in Afghanistan as market is expected huge hit in its business post-resignation of President Ashraf Ghani. In January, Tejas Networks had signed a multi-year contract with Asia Consultancy Group (ACG) to build high-capacity National Optical Transport Network in Afghanistan has been jeopardized. Importance of this contract can be understood as the stock price has almost doubled after the announcement of this deal in January 2021.” Gorakshkar went on to add that the stock may continue to feel the Afghanistan heat for few more trade sessions.”
Advising Tejas Networks share holders to exit at CMP; Sumeet Bagadia, Executive Director at Choice Broking said, “The counter looks weak on chart and may correct up to ₹330 levels. Those who have holding in this counter are advised to exit from their position at CMP and avoid taking any further position till the stock gets stablised.”
In January 2021, Tejas Networks had announced that it had signed a multi-year contract with Asia Consultancy Group (ACG), a leading independent private company providing Telecommunications infrastructure, managed and engineering services across Afghanistan. ACG with its headquarters in USA, is a full life-cycle managed network service provider in Afghanistan for last many years. As part of this contract, Tejas was supposed to supply its state of the art products to establish a high-capacity national backbone and packet access network in Afghanistan.
However, Tejas Networks has issued clarification on having business exposure in Afghanistan. The company said that it has no customer orders from Afghanistan that are pending for execution. Also, there are no outstanding receivables from customers in Afghanistan and no assets of the company are located in the region.
Vijay Kedia share holding in Tejas Networks
As per the shareholding pattern of this Vijay Kedia portfolio for April to June 2021 quarter, Vijay Kedia has investments in this telecom stock through his company Kedia Securities. Kedia Securities holds 39 lakh shares of the company, which is around 4.17 per cent of the net company shares.
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