Tata Elxsi Limited scaled new heights as its shares surged 3.46% on Monday’s early trades to reach a record high of ₹ 9631.00 apiece on the National Stock Exchange (NSE). The company’s share price increased by 9.94% in the past five days due to a strong growth outlook and its shares are currently trading at ₹ 9551.00.
The share price of the company hit the roof in the past year as it gave multibagger returns of 123.36% in the past year. Interestingly, its shares have given multibagger returns of 1087.94% in the past five years.
If an investor would have invested ₹ 1,00,000 in the company’s shares a year ago, the value of their holdings would have been ₹ 2,23,360 today. Similarly, if ₹ 1,00,000 was invested in the shares of the company five years ago, the value of the holdings would have been a whopping ₹ 11,87, 940 today!
The Tata Group company is among the world’s leading design and technology providers. It provides services across industries including automotive, media, communications and healthcare. It offers its services to high-demand markets like the USA and European countries. It generates about 75% of its revenue from these nations.
The company in its annual report for FY22 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.
“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),” brokerage firm Sharekhan as it suggested a buy rating on the shares with a target price of ₹ 9,750 per share.
Written by Simran Bafna
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