This fundamentally strong Tata group stock which is one of the leading providers of design and technology services across multiple industries is trading at approximately 30 percent discount from its all time high price.
On 26th October shares of Tata Elxsi Ltd closed at Rs. 7,467 per share and have touched an all time high of Rs. 10,760 per share in August 2022. The company has a market capitalization of Rs. 46,974 crores. The stock has delivered approximately a 612.98 percent gain in the last 5 years.
Tata Elxsi is a prominent global company that offers a wide range of design and technology services in various sectors, such as Automotive, Media, Communications, and Healthcare.
Their comprehensive services encompass everything from research and strategic planning to electronic and mechanical design, software development, validation, and deployment. They have a global presence with a network of design studios, development centres, and offices around the world to support their operations.
As the company has a global presence, the majority of its revenues come from the America at 42%, followed by Europe at 36%, India at 17%, and the rest of the world contributing 5% to the total revenues.
Tata Elxsi is creating a bold path into the future with ambitious plans and a keen focus on emerging technologies. They are closely collaborating with various vehicle manufacturers worldwide, as well as in India, to help them transition to SDV-based (self-driving vehicle) systems.
Tata Elxsi anticipates that the use of SDV technology will grow significantly in the next 3-5 years, and it will continue to be a platform for new ideas and improvements in the transportation industry for about the next ten years. Tata Elxsi is actively investing in order to be in a good position to take advantage of the SDV revolution.
The company recently announced results for Q2FY24 and reported revenue growth of 15.5 percent to Rs. 881.7 crores in Q2FY24 from Rs. 763.17 crores in Q2FY23, in the same time period company’s net profit increased by 14.7 percent to Rs. 200 crores from Rs. 174.28 crores.
Having a look at profitability ratios, the company reported return on equity (ROE) of 40.97 percent and return on capital employed of 51.8 percent in the last financial year.
Lastly, promoters of Tata Elxsi hold 43.92 percent stakes in the company whereas the public holds 37.37 percent and remaining 18.61 percent is held by FIIs and DIIs.
Written by: Vinit Israni
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