Tata Elxsi Ltd
Ticker: TATAELXSI
Decent
71/100
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Investing Reference
Price
5454.50
Market Cap
33978.13
Debt/Equity
0.0687
ROE %
29.259
PB
11.8806
Promoter %
43.904
Pledge %
0.000
1Y Rev Growth %
6.376
5Y Rev Growth %
18.562
NP Margin %
20.084
NP Margin 5Y Avg %
21.338
Trading Reference
1M Return %
5.716
6M Return %
-6.296
1Y Return %
-22.321
% Away 52W High
37.024
% Away 52W Low
16.053
Daily Volume
87662
Investment Verdict
Hold
Score 64/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 30/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
Summary
Tata Elxsi Ltd shows strong growth potential in the automotive and healthcare sectors, driven by digital transformation trends.
✅ Positives
- Strong revenue growth in recent quarters
- Robust demand in automotive and healthcare segments
- Innovative solutions enhancing competitive edge
⚠️ Negatives
- High valuation compared to industry peers
- Dependence on key clients for revenue
- Potential impact from global economic slowdown
Verdict
Tata Elxsi is a promising investment with caution.
Recommendation: Consider buying on dips for long-term gains.
Upside Probability: 25% | Downside Probability: 15%
Last generated: 31/10/2025
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Business Overview
Tata Elxsi Ltd is a leading global design and technology services company, catering to diverse industries such as automotive, healthcare, and media. With a strong focus on innovation, it helps businesses transform their ideas into reality through cutting-edge solutions. This makes Tata Elxsi an ideal partner for companies seeking to enhance their product offerings and operational efficiency.
- Part of the Tata Group, a trusted name in India.
- Expertise in product engineering and design services.
- Strong presence in high-growth sectors like automotive and healthcare.
- Focus on emerging technologies like AI and IoT.
- Commitment to sustainability and innovation.
Investment Thesis
Tata Elxsi Ltd stands out as a compelling investment due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. With a focus on innovation and technology, it is well-positioned to capitalize on industry trends, making it a valuable addition to any portfolio.
- Strong backing from the Tata Group enhances credibility and trust.
- Significant growth potential in digital services, driven by increasing demand.
- Attractive valuation metrics compared to industry peers, presenting a buying opportunity.
- Consistent financial performance with a focus on R&D and innovation.
- Strategic partnerships and collaborations bolster market position and growth prospects.
Opportunity vs Risk
Opportunities
- Strong growth in digital services
- Expanding automotive design segment
- Rising demand for AI solutions
- Robust financial performance
- Strategic partnerships with tech firms
Risks ⚠️
- High competition in tech sector
- Dependence on key clients
- Economic slowdown impacts spending
- Regulatory changes affecting operations
- Fluctuating currency exchange rates
Peer Perspective
Tata Elxsi Ltd trades at a premium compared to peers like Infosys and Wipro, reflecting its strong growth potential. A sustained improvement in margins could trigger a rerating, aligning it more closely with its valuation.
Future Outlook
Tata Elxsi Ltd is well-positioned for growth, driven by strong demand in digital services and innovation. However, successful execution and effective cost control will be crucial to maximize shareholder value in the coming years.
📊 Stock Investment Checklist (100 Points)
Tata Elxsi Ltd • Updated: 2025-09-18 09:13:35
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10BusinessHighTata Elxsi operates in the technology and design services sector, which is future-ready with a strong focus on digital transformation.
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10GrowthHighThe company has shown consistent revenue and profit growth over the past few years, driven by increasing demand in automotive and healthcare sectors.
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10ProfitabilityHighStrong ROE and ROCE metrics indicate effective use of equity and capital, with healthy operating cash flow.
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10ValuationHighValuation ratios like P/E and P/B are in line with industry averages, suggesting fair valuation.
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8BalanceHighThe balance sheet is strong with low debt levels and good liquidity ratios.
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9GovernanceHighPromoter holding is stable with no significant pledging, and disclosures are transparent.
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7DriversHighKey growth drivers include digital services and automotive design, but execution risks remain.
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5TechnicalsGoodMarket sentiment is positive, but liquidity is moderate.
Final Score & Verdict
Score 71 / 100
• Decent
Tata Elxsi Ltd presents a decent investment opportunity with strong fundamentals and growth potential, though investors should remain cautious of execution risks.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 80/100
- Profitability: 70/100
- Governance: 85/100
- Market Confidence: 78/100