Tata stock in focus: HDFC Securities keeps ‘Add’ on Tata Elxsi, but cuts target price; Here’s why – Markets

Tata stock in focus: HDFC Securities keeps 'Add' on Tata Elxsi, but cuts target price; Here's why - Markets


Tata stock in focus: The brokerage firm, HDFC Securities, has maintained an ‘ADD’ rating on Tata Elxsi, which is a part of the Tata group, founded in 1989. It is a premier global design and technology services provider. It specialises in embedded product design, industrial design, and software development for the automotive, media, communications, and healthcare industries.

HDFC Securities keeps an add rating on Tata Elxsi, but revises the target price downward to Rs 4,825. Here are the reasons why:

Revenue Growth: According to the brokerage, the company sees revenue growth at 0.9 per cent QoQ (Quarter-on-Quarter), which was slightly below expectations.

Margins: The firm highlighted that the company’s EBITDA margin improved by approximately 130 bps QoQ to 24.6 per cent.
Sector Performance: When talking about Tata Elxsi’s sector performance, the company’s Transportation is stable, media has recovered, but healthcare remains weak.

Outlook: The company’s demand environment remains mixed, primarily due to delays caused by ongoing geopolitical uncertainty.

Valuation: Further, the valuation is estimated at approximately 30 times the projected earnings per share (EPS) for the financial year ending March 2028 (Mar-28E).

Tata Elxsi, which is considered the world’s leading provider of design-led technology services, according to the company’s statement, has announced its fourth quarter results for the period ending 31st March 2026 on April 21.

For the fourth quarter of the financial year 2025-26, the company reported operating revenue of Rs 993.8 crore, while the full-year revenue was Rs 3,757.4 crore.

Highlights of Quarter Ended 31st March 2026:

The Board of Directors recommended a final dividend of 750% (Rs 75 per equity share of par value of Rs 10 each) for the financial year ending 31st March 2026, subject to approval by the shareholders of the company at the upcoming Annual General Meeting.

The shares of Tata Elxsi were down by 4.63 per cent on BSE (10:33 AM), trading at Rs 4435.00. The previous closing scrip was Rs 4650.30.

Motilal Oswal Financial on Tata Elxsi: Maintain Sell with target price of Rs 3,350

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)



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