TATA ELXSI - Research Report

 

 

TATA ELXSI LTD. is a A /T+2 - group Computers - Software & Consulting company having Face value of Rs 10.00. TATA ELXSI LTD. Tata Elxsi is amongst the world’s leading providers of design and technology services across industries including Automotive, Media, Communications and Healthcare. It provides integrated services from research and strategy, to electronics and mechanical design, software development, validation and deployment, and is supported by a network of design studios, global development centers and offices worldwide.

Fundamentals (FY23):

 

CMP	8882.55
52 - week high	Rs. 10,760.40
52 – week low	Rs. 5,012.50
Dividend yield	0.48
ROE	37.18
BVPS	34.55 cr.
Revenue	725.89 cr.
Debt to Equity	0
P/E ratio	542
EPS	Rs 16.4
P/B ratio	195
Market Cap	55,307 Cr.
Face value	Rs. 10.0

 

 

Financial Results:

Company’s Net Sales was Rs 725.89 crore in June 2022 up by 30.01%, Quarterly Net Profit was Rs. 184.72 crore in June 2022 up by 62.93% and its EBITDA stands at Rs. 248.47 crore in June 2022 up 48.35% compared to June 2021.

Recent Updates:

1. Equipped with new-age technology, design and tech service provider Tata Elxsi is helping customers reimagine products and services in the three key verticals of transportation, media and telecom and healthcare which help customers transform their products, and our own platforms such as AUTONOMAI for driverless cars, TETHER for connected cars and TE Play for OTT services. Tata Motors is using TETHER and is powering connectivity and data-led services for almost 500,000 on-road vehicles across their range of electric, passenger and commercial vehicles.
2. Google Widevine has selected, TATA ELXSI as a 3PL certification partner to deliver secure content protection for Broadcast, Media, Consumer Electronics and Automotive applications.
3. Recently the company has announced the opening of a global engineering centre (GEC) with Aesculap AG, a subsidiary of B Braun, a manufacturer of medical devices and pharmaceutical products and services.
4. It has also bagged orders to create animation for a Hollywood movie and three animated content series for American television channels.
5. The company’s Thiruvananthapuram based research centre works on advanced automotive technologies including hybrid and electric hybrid vehicles, setting up virtual test environment and executing virtual tests, designing ECUs for various applications including 'AUTOSAR' compliance, and deploying model-based design strategies for developing production code to aggressively pursue projects in aerospace sectors.
6. Tata Elxsi's AR-V2X, which is a first-of-its-kind solution has won the Silver at AutoSens Award under the Best Validation & Simulation Tool category. It fuses the concept of Augmented Reality and Connected Car testing. All you need is a single car for performing V2X field testing; and can be done on any road across the world, without needing any real-world deployments. Tata Elxsi's AR-V2X creates Virtual infrastructure & Virtual cars, based on the user's configuration.

In past three years the stock gave a return of 1277.00% as compared to Nifty which gave a return of 62.55% and 1277.05% return compared to 61.42% rise in Sensex on the back of big orders bagged by the company.

Many research firms have given BUY rating for the company. Considering the company’s growth potential along with its forays into different technology-oriented sectors, AI, VR, AR and many other futuristic technologies included in the company’s portfolio and good financial results posted by the company. The stock is recommended for long term period.

- HET ZAVERI

info@smarinvestment.in

 

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