Tata Elxst Ltd. is a significant IT corporation with a market value of $41,489,19 Cr. It is a leading supplier of design and technology services to the automotive, broadcast, communications, healthcare, and transportation sectors. Several brokerage companies recently recommended Tata Elxsi’s shares as a buy after the company revealed its impressive third-quarter results.
The firm has only issued 1 bonus share since it was listed, which has made its stockholders crorepati, but what is more remarkable is that it hasn’t announced any more.
Revenue during the third quarter of 2018 at Tata Elxsi In comparison to the 3635.4 Cr reported in the same quarter last year, or Q3FY22, the company’s revenue from operations for the quarter ending December 2022, or Q3FY23, was 2817.7 Cr, reflecting a YoY rise of 28.7%.
Tata Elxsi, however, claimed that its total quarterly income now exceeds US$ 100 million for the first time. The firm reported an EBITDA of 246.9 Cr in the third quarter of fiscal year 23 compared to 210.8 Cr in the third quarter of fiscal year 22, reflecting a YoY rise of 17.1%. Its EBITDA margin increased to 30.2% YoY and 9.0% QoQ growth.
Tata Elxsi reported a profit before tax (PBT) of 240.1 Cr in Q3FY23 as opposed to the 200.3 Cr reported in the corresponding quarter a year prior, representing a YoY growth of 19.9%. The company also reported a profit after tax (PAT) of 194.7 Cr in the quarter that ended December 2022 as opposed to 151.0 Cr reported in the quarter that ended December 2021, registering a YoY growth of 29.0%. The firm reported an increase in EPS of 11.7% QoQ and 29.0% YoY to Rs. 31.26.
Strong QoQ increases of 5.1%, 25.5%, and 9.3% were all experienced by EPD, IDV, and SIS. Tata Elxsi said that its Transportation division saw exceptional growth of 12% QoQ and 33.2% YoY with the aid of sizeable acquisitions and market share increases in EV, Software Defined Vehicles, and adjacencies. The healthcare industry expanded by 28.4% YoY, which was fueled by new product engineering, digital health, and regulatory services.
The media and communications industry increased 14.7% year over year, aided by new achievements in Android TV and AdTech as well as platform-driven deals with operators. When discussing the company’s performance, Mr. Manoj Raghavan, President and Overseeing Overseer of Goodbye Elxsi, said, “We have conveyed a fourth of consistent development in an occasionally powerless and testing quarter for the innovation business and large-scale financial vulnerability in our key business sectors.
We are major areas of strength for seeing supported development in the Car and neighboring sections in Transportation, driven by our separated EV and advanced abilities. We won long-term bargains in EV and Programming.
Even though we keep investing in hiring the appropriate talent to provide outstanding results for our clients, for the third straight quarter. The growing number of strategic accounts and new products we are launching, this is assisting us in accelerating growth.
To assist our expansion in Germany and Europe, we have also invested in the creation of a digital engineering center in Frankfurt. We are entering the last quarter of the fiscal year with a robust order book, a solid transaction pipeline across key markets and sectors, and a differentiating position for Design Digital,” he continued.
Share price and bonus share history for Tata Elxsi
The closing price of Tata Elxsi shares on Friday was *6662.10 per share, up 0.99% from the previous close of 36596.80. The stock had a 52-week high of 10,760.40 on August 17, 2022, and a low of 35,708.10 on December 26, 2022.
Tata Elxsi shares have increased from 10.63 on April 5, 1996, to the present market price, which is logging in at an all-time high of 62,572.62%. As a result, if a shareholder had made a *1 lakh investment at the stock’s opening price of 10.63, they would have acquired a total of 9,407 shares.
According to information on the BSE, the business issued bonus shares at a 1:1 ratio on September 18, 2017. As a result, the investor’s share count would have increased to 18,814 upon the announcement of the bonus shares.
The total value of the 18,814 shares is therefore now greater than Rs. 12.53 Crore based on the current market price. As a consequence, if someone had invested in the stock, a 1 lakh rupee investment in Fata Elxsi would have increased to 12 Cr. 26 years prior
Are Tata Elxsi shares worth buying after Q3 earnings?
TEIX is presently trading at a value with a P/E multiple of 58,63x/47.52x on PY25E/FY241 profits, according to research analysts at the brokerage company KRChoksey. We are using a P/E multiple of 64x to the FY24 estimated EPS of INR 138.8 to arrive at a target price of INR 8,884 per share, an increase of about 35% over the CMP.
We also expect strong deal momentum across verticals, the addition of new clients from newer geographies, a higher focus on IDV especially in design-led digital projects, and a multi-year tailwind in EPD.
The research experts at HDFC Securities stated on Friday that “IDV business drove Tata Elxsi’s (TELX) rise, but TELX’s growth rate has been decreasing.
Nearly half of the incremental gain in D5 was given by the Design sector, while the Transportation vertical also contributed significantly to revenue growth. These were partially offset by a sequential reduction due to the impact of furloughs in the Media & Communication and Medical sectors.
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