This Tata Group stock which is engaged in the providers of design and technology services across industries including Automotive, Communications, Media, and Healthcare in focus after the company partnered with DENSO and AAtek for Robotics and Automation Innovation Lab to leverage AI-driven analytics
Price Action
With a market capitalization of Rs. 40,414 Crores, the shares of Tata Elxsi Limited were up by 1 percent in the day’s trade touching a day’s high of Rs. 6,617.45 per equity share, from its previous day’s close price of Rs. 6,548.95. The stock has delivered a negative return of 23 percent in the past year which has underperformed the nifty index in the same period. The stock has reiterated from the day’s high and currently trading at Rs. 6,488 apiece which is 0.92 percent lower from the previous closing price.
What Happened
Tata Elxsi has partnered with DENSO Robotics Europe and AAtek, and jointly inaugurated the Robotics and Automation Innovation Lab in the Frankfurt office on November 20, 2024. This facility aims to advance robotics automation for the sector like medical devices, pharmaceuticals, and life sciences.
This facility would serve as an R&D hub for proof-of-concept and full-scale projects, mainly focusing on modular automation to simplify maintenance and product development.
This lab would feature live demonstrations of high-precision robotic applications in diagnostics, cell culture, and sterile environments. By specializing in AI-driven analytics, this facility would support personalized medicine, hospital lab automation, automated liquid handling, diagnostics, and drug discovery. This facility would also provide product design, application development, and regulatory compliance services.
Management Commentary
On opening the Lab facility, Raghav Yesodha, Director of Healthcare & Life Sciences at Tata Elxsi, said that it signifies a significant milestone in merging Japanese innovation, German precision, and Tata Elxsi’s expertise. This collaboration aims to improve healthcare automation and keep customers ahead of evolving market demands.
Arun Damodaran, Founder and CEO of AAtek Group, pointed out the strength of their
partnership with Tata Elxsi and DENSO. He noted that together, they can provide comprehensive, end-to-end solutions for robotics and automation in the life sciences and pharmaceutical sectors.
Dirk Schöffler, Head of DENSO Robotics Europe, highlighted DENSO’s leadership in robotic technology. He stated that the lab offers opportunities for developing innovative solutions through “Crafting the Core,” driving creativity and progress to meet current market needs beyond traditional boundaries.
About the Company
Tata Elxsi which is a part of the Tata Group, is a leader in design and technology services, specializing in product engineering across sectors like healthcare, automotive, and media. They offer end-to-end solutions, including R&D, software development, and regulatory compliance, leveraging advanced technologies such as AI and IoT to drive innovation.
Financials & Ratios
Its Revenue from operations improved by 8.27 percent year on year from Rs. 882 Crores in Q2FY24 to Rs. 955 Crores in Q2FY25, accompanied by profits of Rs. 200 Crores to Rs. 229 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 34.51 percent and a return on capital employed (ROCE) of 41.95 percent. It has reported a debt-to-equity ratio of 0.09.
Shareholding Pattern
As of September 2024, the shareholding pattern with promoters stake holding a share of 43.91 percent in Tata Elxsi, Foreign Institutional Investors (FII) holding around 13.65 percent, Domestic Institutional investors (DII) standing at 7.38 percent, Government holding around 9.87 percent, and public holdings standing at 35.04 percent.
Written by Santhosh S
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