This Tata Group stock claims Rs 10,000-mark; zooms 133% in one year

Tata Elxsi hit a new high of Rs 10,150, rallying 7 per cent on the BSE in Friday's intra-day trade

Shares of Tata Elxsi hit a new high at Rs 10,150 as they rallied 6.8 per cent on the BSE in Friday’s intra-day trade on the back of strong growth outlook. Tata Elxsi is a subsidiary of Tata Sons.

At 1:00 PM, the stock traded 5.7 per cent higher at Rs 10,039, as compared to 0.23 per cent rise in the S&P BSE Sensex. In the past one month, it has rallied 26 per cent, as compared to a 10 per cent rise in the S&P BSE Sensex. In the last one year, it zoomed 133 per cent, as against a 8 per cent gain in the benchmark index.

Tata Elxsi provides various engineering, research & development (ER&D) services for transportation, media & broadcasting and healthcare verticals, which benefits from the current upcycle in ER&D spend. The company offers its services to high demand markets like US and European countries – generating almost 75 per cent of its revenue from these geographies.

In the first quarter (April-June) of the current financial year 2022-23 (Q1FY23), Tata Elxsi reported Rs 726 crore revenue from operations, up 6.5 per cent quarter-on-quarter (QoQ) and 30 per cent over the same quarter of the previous year. This growth was predominantly volume led. EBITDA margin expanded 36-basis point over the previous quarter. Profit after tax for the quarter was Rs 185 crore, showing a robust growth of 15.4 per cent QoQ and 62.9 per cent year-on-year.

While, announcing Q1FY23 results on July 14, the management said the company is entering the second quarter (July-September) with a strong order book and a healthy deal pipeline across the key markets and industry.

In its FY22 annual report, the company 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.

The company is actively engaged with some of the world’s best known automotive OEMs and suppliers for the development and deployment of future mobility.

In 2021-22, the rupee witnessed moderate devaluation over key foreign currencies of countries where Tata Elxsi operates, and this has helped us in mitigating some of the effects of cost inflation, the company said.