Shares of Tata Elxsi rose 5 percent to a record high of Rs 7,971.90 on the BSE in intraday trading on Friday in a weak market. Shares of Tata Group Company surpassed their previous high of Rs 7,949 reached on February 1, 2022.
Tata Elxsi is among the world’s leading providers of design and technology services across industries including automotive, media, communications, healthcare and transportation.
Over the last three months, the stock has outperformed the market with a 45% gain after the company achieved strong and steady growth, with revenue growth of 33.2% year-on-year and profit growth after tax (PAT) of 43.5% in the December Quarter (Q3FY22). By comparison, the S&P BSE Sensex was up marginally 0.26 percent over the same period.
While announcing third quarter results on January 18, 2022, Tata Elxsi management said the company is experiencing significant growth in the automotive market, with large and strategic deals with both OEMs and suppliers in the sectors. electric, autonomous, connected and digital, underscoring the company’s technology and engineering. leadership.
The company has won large multi-year strategic deals this quarter against top global competitors in all three industries. “We are entering the fourth quarter with confidence from a strong order book and a healthy deal pipeline in key markets and industries,” he said.
Meanwhile, in February, Tata Investment Corporation Limited, the promoter group company of Tata Elxsi sold 150,000 shares worth Rs 109 crore in the company. Tata Investment Corporation had sold these shares on the open market between February 10, 2022 and February 16, 2022, exchange data shows. The names of the buyers were not immediately determined.
HDFC Securities analysts remain optimistic about the company’s growth prospects and growth leadership in ER&D (+27/31 percent revenue/EPS CAGR over FY21-24E), although risk reward is unfavorable with the reduced growth premium versus ER&D peers. “The near-term outlook remains strong with FY22 revenue growth expected at 33.6%, which would subsequently normalize to around 26/21% in FY23/24,” the firm said. brokerage on the results date.