The discussion is not about the quality but of competitiveness of their products. The quality of tejas is fine and they will work as expected.
As regards TAM, they will keep getting business under Bharatnet. We need to understand that any such project will last for anywhere between 6 months to 1 year and next round of business will come once the capacity is filled up. By nature the telecom business is lumpy and is basis a project they get. Typically there is 1 or 2 RFP’s in market every year and the one that wins will have work for 12 to 24 months. They will get one odd business from VI’s of the world or from cable operators.
I agree that Maruti 800 maybe an investible business but the profitabiliity of Tejas is more from services business from Bharatnet and not majorly from products business. Check the pre TCS business and profitability.
The kicker for Tejas is Sankhya Labs and how it performs. Tejas may got more bharatnet business but it cant be a predictable annuity business.
My comments are not on the investability of the business but on the competitiveness and the telecom landscape.
I am not invested so nothing in my comments has any bias, its just that I have and am working in the telecom business so am aware of the dynamics.
I am not trying to make a case for investment or otherwise.