Multibagger Tata Stock: Tata group stocks are preferred by investors due to their stable returns both in the long term and short term. Tata Elxsi Ltd., incorporated in the year 1989, is a Mid Cap company (having a market cap of Rs 57,970.65 Crore) operating in the IT software sector. Tata Elxsi, a blue chip stock, has more than doubled investors’ money in the last one year. That means investors who bought the stock one year ago have gotten over 126 per cent returns.
Tata Elxsi Stock Price History
The current market price of Tata Elxsi stood at Rs. 9,496.80/share on NSE, and rose by 0.35 per cent, till last traded. In the last 5 days, the share price of this company has surged by 5.70 per cent on NSE, and in the last 1 month, its share price has surged by 18.03 per cent. In the past 6 months, it has surged 28.38 per cent.
The 52-week high level of this stock is Rs. 9,700.75, and the 52-week low level of this stock is Rs. 4,110.
Tata Elxsi Financials
For the quarter ended 30-06-2022, the company reported a Standalone Total Income of Rs 736.21 Crore, up 5.20 per cent from last quarter’s Total Income of Rs 699.83 Crore and up 27.85 per cent from last year same quarter Total Income of Rs 575.82 Crore. The company reported a net profit after tax of Rs 184.72 Crore in the latest quarter.
Tata Elxsi is amongst the world’s leading providers of design and technology services across industries including Automotive, Broadcast, Communications, Healthcare, and Transportation. Tata Elxsi is helping customers reimagine their products and services through design thinking and the application of digital technologies such as IoT (Internet of Things), Cloud, Mobility, Virtual Reality, and Artificial Intelligence, the company informs.
In its FY22 annual report, the company said that its automotive engineering business is well poised to address the emerging opportunities from the ecosystem transformation in the sector, allowing Tata Elxsi to actively engage with its customers to drive projects around Autonomous Driving (AD), ADAS (Advanced Driver Assistance Systems), electrification projects and digitalisation.
Should you Buy?
Brokerage firm Sharkhan has a buy rating on Tata Elxsi with a price target of Rs 9,750, given its strong growth potential, robust deal wins and consistent dividend payouts.
According to the brokerage, Tata Elxsi is well poised to capture market opportunities across the selected industries given its unique capabilities in design-led engineering. The company’s USD revenue and earnings are likely to clock a CAGR of 23 per cent and 20 per cent, respectively, over FY2022-FY2024E.
“We continue to prefer Tata Elxsi, given its strong growth potential, market share gains, superior margin profile, differentiated capabilities in digital engineering and strong balance sheet (cash and investments was 51 per cent of total assets),” it said.