Tata Elxsi, a subsidiary of the Tata Group, has established itself as a key player in the automotive technology industry. In the past three years, the company’s stock price has experienced a remarkable increase, surging by 1000%.
This has piqued the interest of many investors who are curious about whether Tata Elxsi is a wise investment choice and what the future holds for the company’s share price. One individual who holds an optimistic view on Tata Elxsi is Saurabh Mukherjea, the founder of Marcellus Investment Managers, who has added the stock to his “Rising Giants” portfolio, highlighting the company’s potential.
To provide an overview of Tata Elxsi’s investment potential, this article will examine the company’s recent performance, growth prospects, as well as wider trends in the auto sector.
We will also examine the various factors that could impact the company’s share price target between 2024 and 2030.
As of February 15, 2024, Tata Elxsi is trading at Rs. ₹ 7,490 with a market cap of Rs. ₹ 46,643 Cr.
Tata Elxsi LTD Q3 FY24 Results
- Tata Elxsi Q3 FY24 results: 6.04% YoY profit increase
- Topline up by 11.8%, QoQ revenue growth at 3.69%
- Operating income increased by 2.49%, EPS for Q3 FY24 rose by 6.01% to ₹33.14
- Selling, general & administrative expenses rose by 3.86% QoQ, operating margin at 29.5%
- Specific segments: Transportation grew by 2.7% QoQ, healthcare by 4.6% QoQ
- CEO confident in sustained growth, 350 employees added, attrition at 12.9%
- Market response: -9.65% return in the last week, 7.5% return in the last 6 months, -11.25% YTD
Stock history of Tata Elxsi
Tata Elxsi’s stock has had a varied trajectory over the years, characterized by fluctuations and growth. During the early years of the company’s existence, the stock traded at a relatively low price, with limited price movements due to the company being in its early growth stages and not yet established as a major player in the technology industry. However, in the early 2000s, Tata Elxsi began to gain momentum and establish itself as a significant technology player, resulting in increased demand for its shares.
Over the years, the company’s stock price has continued to fluctuate in response to changes in the broader economic environment and the company’s internal developments, but it has generally trended upwards. Investors have recognized the company’s potential for growth and innovation, given its strong focus on research and development and its ability to stay ahead in the fiercely competitive technology industry.
As mentioned earlier, the stock has witnessed significant growth in recent years, increasing by a whopping 1000% in just three years, contributing to its emergence as a leading technology company in India. Therefore, the history of Tata Elxsi’s stock is a reflection of the company’s transformation from a small player to a leading technology company in India.
You can buy Tata Elxsi shares from the following trading platforms:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| February 2024 | ₹7,524.00 | ₹6,542.61 |
| March 2024 | ₹7,677.55 | ₹6,676.13 |
| April 2024 | ₹7,453.93 | ₹6,481.68 |
| May 2024 | ₹7,343.78 | ₹6,385.89 |
| June 2024 | ₹7,608.15 | ₹6,615.78 |
| July 2024 | ₹7,532.07 | ₹6,549.63 |
| August 2024 | ₹7,833.35 | ₹6,811.61 |
| September 2024 | ₹8,146.69 | ₹7,084.08 |
| October 2024 | ₹7,986.95 | ₹6,945.17 |
| November 2024 | ₹8,226.56 | ₹7,153.53 |
| December 2024 | ₹8,432.22 | ₹7,332.37 |
In February 2024, the maximum price for the market is projected to reach ₹7,524.00, while the minimum price is expected to be ₹6,542.61. As the months progress, there is a consistent upward trend, with December 2024 anticipated to witness the highest maximum price of ₹8,432.22 and a corresponding minimum price of₹7,332.37. These projections suggest a positive trajectory for market prices throughout the year 2024.
| When | Maximum Price | Minimum Price |
| January 2025 | ₹8,600.87 | ₹6,616.05 |
| February 2025 | ₹8,821.40 | ₹6,785.69 |
| March 2025 | ₹9,165.44 | ₹7,050.33 |
| April 2025 | ₹8,985.72 | ₹6,912.09 |
| May 2025 | ₹8,724.00 | ₹6,710.77 |
| June 2025 | ₹9,116.58 | ₹7,012.75 |
| July 2025 | ₹8,937.82 | ₹6,875.25 |
| August 2025 | ₹9,214.25 | ₹7,087.89 |
| September 2025 | ₹9,536.75 | ₹7,335.96 |
| October 2025 | ₹9,784.71 | ₹7,526.70 |
| November 2025 | ₹10,029.3₹ | ₹7,714.86 |
| December 2025 | ₹10,280.06 | ₹7,907.74 |
In January 2025, the market is anticipated to experience a maximum price of ₹8,600.87 and a minimum price of ₹6,616.05. As the year unfolds, these values are projected to exhibit a consistent upward trend, culminating in December 2025 with an expected maximum price of ₹10,280.06 and a corresponding minimum price of ₹7,907.74. This forecast suggests a positive trajectory for market prices throughout 2025, reflecting potential growth and stability.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹14,035.35 | ₹9,824.74 |
| 2027 | ₹15,438.88 | ₹10,807.22 |
| 2028 | ₹21,614.44 | ₹10,807.22 |
| 2029 | ₹18,713.80 | ₹9,356.90 |
| 2030 | ₹24,327.94 | ₹17,029.56 |
The share price predictions for Tata Elxsi spanning from 2026 to 2030 indicate a noteworthy trajectory. Starting in 2026, the anticipated share price is expected to fluctuate between ₹14,035.35 (maximum) and ₹9,824.74 (minimum).
Subsequent years demonstrate a consistent upward trend, with projections reaching a maximum of ₹24,327.94 and a minimum of ₹17,029.56 by 2030. These forecasts reflect a positive outlook, showcasing potential growth opportunities for investors in Tata Elxsi over the specified period. However, investors need to consider various factors and market dynamics that may influence the actual outcomes.
Financial Condition of Tata Elxsi: Last 5 years
| Financials | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Sales | 514 | 605 | 772 | 849 | 1,075 |
| Expenses | 447 | 535 | 635 | 672 | 827 |
| Operating Profit | 68 | 70 | 137 | 177 | 248 |
| OPM % | 13% | 12% | 18% | 21% | 23% |
| Other Income | 6 | -10 | 16 | 4 | 12 |
| Interest | 3 | 5 | 3 | 1 | 1 |
| Depreciation | 21 | 24 | 35 | 25 | 23 |
| Profit Before Tax | 50 | 32 | 115 | 156 | 236 |
| Tax % | 33% | 34% | 35% | 34% | 34% |
| Net Profit | 34 | 21 | 75 | 103 | 155 |
| EPS in Rs | 5.45 | 3.37 | 12.06 | 16.52 | 24.85 |
| Dividend Payout % | 64% | 74% | 37% | 33% | 28% |
Tata Elxsi, a renowned design and technology services provider, has showcased impressive financial performance over the past five years. From 2019 to 2023, the company’s sales experienced steady growth, starting from 514 and reaching an impressive 3,145.
Despite increased sales, Tata Elxsi managed to keep its expenses in check, demonstrating efficient financial management. The company’s operating profit showed a positive trend, steadily increasing from 68 Crore to 962 Crore (in INR).
With a consistent operating profit margin percentage ranging from 13% to 31%, Tata Elxsi demonstrated its ability to maintain profitability. Other income and net profit also witnessed notable improvements, indicating the company’s overall financial strength and success in delivering value to its stakeholders.
FAQS
The share price target of Tata Elxsi for 2025 might be around ₹10,280.06.
Can Tata Elxsi touch 15,000 INR by 2025?
Yes, according to our analysis, Tata Elxsi can reach 15,000 INR by 2027.
The share price of Tata Elxsi might reach around ₹24,327.94 by the end of 2030.
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Conclusion: Should you invest in Tata Elxsi in 2024?
Based on the analysis of Tata Elxsi’s financial statements for the last five years, it is evident that the company has been consistently growing its revenue and profits, which is a positive sign for investors. Additionally, the company’s profit after tax (PAT) has also seen significant growth over the years, indicating good financial health.
The company has set ambitious share price targets for the coming years, with a projection of a maximum of ₹24,327.94 and a minimum of ₹17,029.56 in 2030. Considering the company’s financial performance, growth prospects, and ambitious targets, it may be a good investment opportunity for long-term investors.
However, as with any investment, it is essential to conduct thorough research and analysis before making a decision. It is also important to keep in mind that stock prices can be volatile and subject to market fluctuations, and investors must have a long-term investment horizon and risk tolerance to reap potential benefits.
What did we learn?
