With the recent downfall witnessed by the Indian securities market, retail investors are in continuous search of stocks to enter at a reasonable price.
Listed below is one stock from the Tata Group universe that is currently trading at a discount of more than 30 percent compared to its 52-week high:
Tata Elxsi Limited
With a market capitalization of Rs 44,000 crores, the stocks of Tata Elxsi Limited closed at Rs 7,073..45 on Monday, slipping around 0.60 percent as compared to the previous close of Rs 7,113.75 apiece.
The company’s stock hit its 52-week high mark in August 2022 at a price of Rs 10,760.4. Compared to those levels, the current price prevailing in the markets exhibits a discount of approximately 34 percent.
Digging into the company’s standalone numbers, the company, on an annual basis, reported decent growth in the basic business parameters such as the operating revenues as well as after-tax profits.
The operating revenues rose from Rs 2,470 crores during FY21-22 to Rs 3,144 crores during FY22-23, and, the after-tax profits, in congruence with the pattern, took a shift from Rs 549 crores to Rs 755 crores.
The profitability metrics, too, have stayed at the same levels or improved from the current levels. The return on equity (RoE) increased from 34.33 percent during FY21-22 to 36.20 percent during FY22-23.
The return on capital employed (RoCE) stayed took a marginal hit from 42.91 percent to 41.73 percent keeping the timeframe the same. The debt-to-equity ratio of the company is ‘zero’ and has remained constant over a long period of time.
According to the shareholding pattern data available for the June 2023 quarter, the company’s Promoters hold a 43.92 percent stake, and the Foreign Institutional Investors (FIIs) hold a 14.22 percent stake in the company.
Tata Elxsi Limited is associated with the provision of design as well as technology services for many sectors, including aerospace & defense, communications, automotive, etc. The company has operations in India and also overseas covering countries like the United States, Europe, and many more.
Written by Amit Madnani
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