Tata Elxsi Stocks: Tata Elxsi, a design and technology provider has turned into a multibagger stock in the last one year as it more than doubled investors’ money during the period. While announcing its earnings for the quarter ended March 2022, Tata Elxsi also said that its board has recommended a final dividend of 425 per cent at Rs 42.50 per share for the year 2021-22, which is subject to the approval of the members at the forthcoming Annual General Meeting (AGM) and subject to tax.
Tata Elxsi announced earnings for the quarter ended March 2022 yesterday. The company reported Rs. 2470.8 crore of revenue from operations for the financial year 2021-22 ending March 31, 2022, a growth of 35.3 per cent YoY. During the period, the company generated a PBT of Rs. 745.5 crore, registering an impressive growth of 45.6 per cent YoY. The company registered a net profit of Rs. 549.7 crore during the year, growing 49.3 per cent YoY.
For the quarter ending March 31, 2022, the company reported Rs. 687.1 crore of revenue from operations, a growth of 7.3 per cent over the previous quarter (QoQ) and 31.5 per cent over the same quarter of the previous year (YoY). During the period, PBT stood at Rs. 220.3 crore, registering a growth of 10 per cent QoQ and 36.2 per cent YoY. The company’s growth was powered by Embedded Product Design (EPD), growing at 7.5 per cent QoQ, while Industrial Design and Visualization (IDV) grew smartly at 8.0 per cent QoQ.
Tata Elxsi is amongst the world’s leading design and technology services providers across industries, including Automotive, Broadcast, Communications, Healthcare and Transportation.
“This has been the strongest year of growth in the company’s history and an all-round performance across business units, industries and geographies. We continue to execute strongly on our growth aspirations with over 7.4 per cent QoQ CC (constant currency) revenue growth and 10% quarter-on-quarter (QoQ) PBT growth in Q4 FY22,” said Tata Elxsi’s Chief Executive officer (CEO) and Managing Director Manoj Raghavan.
Shares of Tata Elxsi have given multibagger returns of more than 160.9 per cent in a year’s period whereas the Tata Group stock has surged over 33 per cent in 2022 (YTD) so far.
Should You Add Tata Elxsi to Your Portfolio?
Santosh Meena, Head of Research, Swastika Investmart Ltd., said: “The management commentary has been positive for the future and the company has won multiyear, multimillion deals in areas like cloud engineering, EV system development. Tata Elxsi has been selected by a leading German Tier 1 supplier for establishing an Offshore Development Center for Autonomous Driving and ADAS technologies and selected to establish & set up a Virtual Reality Innovation Center by a leading European commercial vehicle manufacturer. Due to the above-mentioned factors the shares are rising post Q4 FY22 results.”
“Technically, Tata Elxsi the strongest counter in the IT pack is bouncing from the strong demand zone of 7700-7500 after a decent correction however if it slips below the 7500 level then it may also witness a profit booing towards the 6700 level. On the upside, 20-DMA around 8500 will act as an immediate and strong resistance; above this, it may resume its uptrend for fresh highs,” Meena said.
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