Fundamental Analysis of Tata Elxsi Share

Fundamental Analysis of Tata Elxsi Ltd.

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Welcome to the future, where the fusion of design and digital tech is reshaping India’s future! Tata Elxsi, the game changer is leading the way in this tech revolution.

Tata Elxsi share is at the forefront of this exciting tech revolution. As India’s economy keeps growing, digital tech is becoming a big deal and Tata Elxsi is right in the middle of it all. Imagine this: stuff like the Internet of Things, cloud computing, mobile apps, virtual reality, and super-smart artificial intelligence are all coming together to make our lives easier and cooler. But let’s be honest all this tech stuff can get pretty confusing. That’s where Tata Elxsi comes in, making things less complicated and smoother for all of us. So, let’s explore this digital journey and see how Tata Elxsi is shaping our future, one cool innovation at a time!

Tata Elxsi’s Evolution Over the Years

Tata Elxsi, established in 1989, is a global leader with over 30 years of experience and 11,000+ experts across 16 countries. It specializes in AI, Automotive, Media, Broadcast & Communication, and Healthcare. It aims to drive innovation in the rapidly changing IT world through design and tech services to industries like Automotive, Broadcast, Communications, Healthcare, and Transportation. It uses cutting-edge tech like IoT, Cloud, Mobility, Virtual Reality, and Artificial Intelligence to help businesses improve their products and services.

Let’s explore the incredible evolution of Tata Elxsi, a driving force in India’s tech revolution, from its inception in 1989 to its latest milestones in 2023.

Business Overview of Tata Elxsi Share

Tata Elxsi offers a wide range of services to various industries. It has a strong presence in each of these fields, and it provides customized solutions that meet the specific requirements of businesses in these industries.

Returns Over Various Periods

No Data Found

These numbers clearly show how well Tata Elxsi’s shares have been doing over different periods.

In the past few years people who invested in Tata Elxsi have seen some impressive gains. In the last year value of the shares went up by 3% followed by a decent 22% gain in the second year. But the real story is the long term growth when share shot up by a huge 401% increase over three years and surged 670% gain over five years, showing that Tata Elxsi has been delivering huge returns to its shareholders and is a good option for investors.

Tata Elxsi Share Key Financial Metrics 

Company Essentials Value
Market Cap
₹ 47,108.39 Cr.
Face Value
₹ 10
Current Price
₹ 7,564.40
52 Week High
₹ 7,947
52 Week Low
₹ 5,709.05
Industry P/E
31.13
Stock P/E
60.01
P/B
22.59
Div. Yield
0.8%
Debt
₹ 0 Cr.
EPS (TTM)
₹ 126.06

Tata Elxsi’s  Stock Cash Flow (value in Cr.)

The table below presents Tata Elxsi’s cash flow over the past four years, showing the fluctuations where in March 2020, it generated a healthy cash flow from operating activities, which continued to increase in the following years. However, cash flow from investing activities experienced variations with negative values in March 2021 and March 2023. Cash flow from financing activities also displayed fluctuations. In March 2022, there was a noteworthy increase in net cash flow but it turned negative again in March 2023.

This indicates the need for careful financial management in the future.

Particulars (Standalone) Mar 2020 (Cr.) Mar 2021 (Cr.) Mar 2022 (Cr.) Mar 2023 (Cr.)
Cash from Operating Activity
255.76
437.39
483.03
486.86
Cash from Investing Activity
-42.66
-438.93
--106.24
-200.95
Cash from Financing Activity
-123.71
-126.46
-326.10
-303.12
Net Cash Flow
174.71
-128.01
50.69
-17.21

Annual Financial Overview

Sales Growth: Tata Elxsi has demonstrated impressive sales performance over the past four years. In March 2020, the company reported sales of 1,610 crores with a modest growth of 0.8%. But things really picked up in the following years, as by March 2021, the sales had surged by 13.4% to reach 1,826 crores. Then, in March 2022 there was a 35.3% growth bringing the sales to 2,471 crores. And the latest year for March 2023 shows sales of 3,145 crores, a substantial 27.3% increase. This consistent growth demonstrates that Tata Elxsi is effectively meeting market demands.

Operating Profit Growth: Tata Elxsi’s operating profit has been on an upward trend in recent years. However, there was a slight dip in 2020 where the company experienced a 17.3% decrease compared to the previous year. It has recovered strongly in 2021 and continued to grow steadily in 2022 and 2023. It indicates a positive and steadily improving performance.

Net Profit Growth: Tata Elxsi’s net profit performance has been quite interesting over the past four years. As of March 2020, the company faced a bit of a setback with a net profit of 256 crores, an 11.7% decrease from the previous year. However, things took a positive turn in March 2021, as their net profit surged to 368 crores marking an impressive 43.8% growth. This momentum continued into March 2022 with a net profit of 550 crores and a growth rate of 49.5%. The financial success didn’t stop there as in March 2023 the company achieved a net profit of 755 crores, with a still healthy 37.3% growth rate. This consistent improvement reflects a solid and positive trend in Tata Elxsi’s financial performance over these years.

Tata Elxsi Share Key Financial Metrics

ROE Ratio:

ROE Ratio or Return on Equity is like a report card for a company. It tells us how well the company uses the money its shareholders invested. A higher ROE means the company is good at turning shareholder’s money into profits.

ROCE Ratio:

ROCE Ratio which stands for Return on Capital Employed is a financial measure that tells us how well a company uses its money to make more money. If a company has a high ROCE, it means it’s doing an excellent job of using its money to make profits. But if the ROCE is low it could mean the company isn’t using its money very efficiently.

No Data Found

Also Read This: Fundamental Analysis of Tata Elxsi Ltd.

Tata Elxsi’s Stock Shareholding Pattern

Tata Elxsi’s shareholding pattern (Sep 2023) reveals a diverse ownership structure. The company’s promoters the original founders or owners hold a 43.92% stake indicating their strong control. Meanwhile, the public consisting of individual and institutional investors collectively owns 37.47% of the company’s shares, showcasing a widespread interest in the stock.

Domestic Institutional Investors (DIIs) own a smaller portion at 4.81% and Foreign Institutional Investors (FIIs) have a 13.80% stake. This mix of ownership influences the company’s governance and strategic decisions with a combination of local and international interests impacting its performance.

Promoter Pledging (%): 0

No Data Found

Final Words

Tata Elxsi share is a leading player in India’s tech sector providing a wide range of services to various industries. The company has reflected strong financial performance with consistent growth in sales and profits over recent years, and it maintains healthy Return on Equity and Return on Capital Employed ratios, reflecting efficient use of resources.

The diverse shareholding pattern including promoters, the public and domestic and foreign investors contributes to the company’s governance. Tata Elxsi’s prominent role in the tech revolution and financial stability make it the best option for investors. However, prudent financial management particularly in terms of cash flow, will be crucial for sustaining growth and innovation.

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Happy investing and thank you for reading!

Disclaimer:
This website content is only for educational purposes, not investment advice. Before making any investment, it’s important to do your own research and be fully informed. Investing in the stock market includes risks, and you should carefully read the Risk Disclosure documents before proceeding. Please remember that past performance doesn’t guarantee future results, and due to market fluctuations, your investment goals may not always be achieved.

Posted in Share Analysis

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