Shares of Tata Elxsi jumped four per cent in Friday’s intraday trade after the Tata Group company posted robust result in the April-June quarter.
Tata Elxsi has reported a 63 per cent year-on-year (YoY) growth in profit at Rs 184.7 crore for quarter ended June 2022. Likewise, the company’s revenue from operations grew to Rs 725.9 crore, a growth of 6.5% quarter-on-quarter (QoQ) and 30.0% YoY.
The company’s growth was primarily volume led, with all three segments of EPD, IDV and SIS showing robust growth of 6.2%, 6.6% and 19.8% QoQ respectively, said the company in a regulatory filing.
“We are starting FY23 on a strong note with 6.5% QoQ revenue growth in constant currency. This was all volume-led and supported by robust growth across divisions, verticals and key markets,” Manoj Raghavan, CEO and Managing Director, Tata Elxsi, had said in a statement.
Tata Elxsi has been a multibagger stock, clocking over 6500% return in the past 10 years, while it yielded almost 80% return in the last one year, as on July 15, despite weak market conditions in the past nine months. It also delivered nearly 800% return in just two years. The counter is still trading around 15 per cent discount from its 52-week high.
What brokerages recommend on Tata Elexsi?
Meanwhile, JP Morgan has downgraded the stock with a target price of Rs 3700 against its Thursday’s closing of Rs 7799 per share. It gave an underweight rating to the stock.
Earlier, domestic brokerage Sharekhan has maintained its buy call on the Tata Group stock with target price of Rs 9750 after business update by the company.
“We retain a Buy on Tata Elxsi given its strong growth potential, robust deal wins and consistent dividend payouts,” it had said.
At around, 12.15 pm, share of Tata Elexsi were trading wit over three per cent gain to 8036.05 per share on the BSE.
Tata Elxsi is amongst the world’s leading providers of design and technology services across industries including Automotive, Broadcast, Communications, Healthcare and Transportation.