The shares of Tata Elxsi hit a new all-time high of Rs 10,398, a new all-time intraday high. On Friday, 40 had a surge of as much as 9.5 per cent over its previous close due to a strong growth outlook. The stock was finally settled 7.85 per cent higher at Rs 10,241. Tata Elxsi is a subsidiary of Tata Sons, the holding company of the Tata Group.
If Indian equity benchmarks are good, a design and tech service provider could witness another 15 -- 20 per cent return.
The business model of the company is unique in comparison to its peers. This stock could give another 15 -- 20 per cent return over the next 8 -- 10 months if the market is good. AK Prabhakar, head of capital, IDBI Capital said that Tata Elxsi would be expensive but it would hardly see any correction given the global recession fears.
The stock has gone up by as much as 138.86 per cent in a year, given closing values into account.
Nitin Pai, the chief marketing officer of Tata Elxsi, said the company brings new-age solutions for driverless cars, connected vehicles and more, and these designs are helping customers reimagine products and services.
We focus on working with customers in application areas that are expected to experience sustained growth, driven by broad and long-term trends in digital technology. These trends require enablers - autonomous systems, robotics, securely-connected machines and personal devices, digitalisation and electrification of automobiles and infrastructure, advanced communications equipment and networks and connected healthcare platforms, Pai told PTI.
The company's net profit went up by 62 per cent to Rs 184.72 crore in the June quarter of Q 1 of the current financial year 2022 -- 23. The profit of Tata Elxsi was 113.37 crore last year.
In Q1, total revenue from operations soared by 30 per cent to 725.9 crore.
Earnings per share EPS rose to Rs 29.66 in Q1 FY 23 from Rs 18.21 in the year-ago period. The company stated that it crossed the 10,000 employee mark with 771 net additions in the quarter.
The target price for the breakout price is around 11,500 followed by the projected Rs 11,750 178.2 per cent retracement level. However, due to the overbough nature of the stock, risk reward ratio seems unfavorable and accumulation at lower levels of Rs 9,500 is recommended, according to Tirthankar Das, Technical Derivative Analyst, Retail, Ashika Stock Broking Ltd.