Tata Group stock trading at discount of 44% from 52-week high to keep an eye on

Tata Group stock trading at discount of 44% from 52-week high to keep an eye on


One of the Tata group stocks engaged in providers of design and technology services across industries including Automotive, Media, Communications, and Healthcare. The stock is trading at near 52 weeks low, which is a discount of 44.36 percent from Rs 9,191.10. 

Stock Movement in 52W 

With a market capitalization of Rs. 39,652.44 crore, Tata Elxsi shares were trading at Rs 6,366.60 per equity share. Currently, the stock is trading at an amazing discount of 44.36 percent from its 52-week high of Rs 9,191.10. The company is maintaining 0.33 percent above its 52-week low of Rs 6,345.55. 

Strategic Deals In Q2 FY25 

In Q2 FY25, Tata Elxsi secured a landmark US$ 50 million strategic deal with a European automotive OEM for SDV platform development and next-generation vehicles. Additionally, the company established significant partnerships in healthcare, including a collaboration with a global AI diagnostics leader and a renal care devices company to develop advanced digital platforms. 

The company further expanded its footprint by winning strategic deals in the Middle East and Africa region through an AI Center of Excellence partnership, along with securing a Design Digital contract with a US technology company for consumer research and insights. These deals showcase Tata Elxsi’s diverse expertise across automotive, healthcare, and digital transformation sectors. 

Recent quarter results and ratios

Tata Elxsi Limited’s revenue has increased from Rs. 882 crore in Q2 FY24 to Rs. 955 crore in Q2 FY25, which has grown by 8.28 percent YOY. As compared to Q1 FY25, the revenue has increased by 3.13 percent, from Rs. 926 crore. 

Additionally, the company has made revenue from India by 25.3 percent and outside countries by 74.7 percent in Q2 FY25. 

The net profit of Kalpataru Projects International Limited has also grown by 14.5 percent, from Rs. 200 crore in Q2 FY24 to Rs. 229 crore in Q2 FY25, and grew by 24.46 percent QoQ from Rs. 184 crore in Q1 FY25. 

Tata Elxsi Limited’s revenue and net profit have grown at a CAGR of 21.87 percent and 32.62%, respectively, over the last four years. 

In terms of return ratios, the company’s ROCE and ROE should be 42.7 percent and 35.5 percent, respectively. The debt-to-equity ratio of the company is to be 0.08x, which shows the company is almost debt-free. Tata Elxsi Limited’s EPS is to be Rs. 131. 

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Shareholding pattern

Tata Elxsi Limited has a majority stake held by the promoters at 43.91 percent, foreign institutional investors at 13.65 percent, domestic institutional investors at 7.38 percent, and the public at 35.04 percent as of September 2024. 

Tata Group Stocks has a majority holding stake in Tata Elxsi Limited, which includes Tata Sons Private Limited at 42.22 percent, and Tata Investment Corporation Limited at 1.69 percent. 

Business Segments 

Tata Elxsi’s dual business segments showcase its technological prowess, combining Software Development and Services for embedded design and innovation with Systems Integration and Support for technical computing solutions. The company leverages IoT, cloud, AI, and VR technologies across both segments. 

The company has earned revenue from system integration and support by 2.9 percent and software development and services by 97.1 percent in Q2 of the financial year 2025. 

Clientele

Tata Elxsi Limited’s client portfolio includes major global players like Jaguar-Land Rover, Comcast, Time Warner Cable, Tata Motors, Broadcom, and Qualcomm. The diverse clientele underscores Tata Elxsi’s capability to deliver high-value engineering services across various industries 

Company Overview

Tata Elxsi Limited was incorporated on March 30, 1989. It is part of the Tata Group, one of India’s largest and most respected conglomerates. The company is a prominent design and technology services company based in India. Tata Elxsi Limited specializes in product engineering and solutions across various sectors, including automotive, broadcast, communications, healthcare, and transportation 

Written By – Nikhil Naik 

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.


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