Tata Elxsi plays a pivotal role in India’s rapidly evolving technology landscape. As one of the country’s leading design and technology service providers, Tata Elxsi’s market presence directly impacts tech industry growth.
For investors, comprehending Tata Elxsi’s share price movements is key to making informed decisions. In a dynamic Indian financial environment, Tata Elxsi’s stock performance acts as a barometer of prevailing market sentiments.
Tata Elxsi share price targets for 2023 to 2040 forecast significant upside based on its sustained growth momentum, increased capabilities and market share gains in key verticals, and technological competitive advantages that will drive future growth.
The company is seen as an attractive long-term investment bet with substantial returns over the next two decades. Investor interest will remain high given the robust outlook for profitability and revenues going forward.
Table of Contents
Tata Elxsi Company Overview
| Company | Tata Elxsi Limited (TATAELXSI.NS) |
| Industry | IT Services, Engineering Design, Automotive, Healthcare |
| Website | https://www.tataelxsi.com/ |
| Headquarters | Bangalore, Karnataka, India |
| Market Capitalization | ~$55.18 Billion (as of Dec 28, 2023) |
| Services Offered | Design & Development, Product Engineering, Digital Transformation, Testing & Validation, Software Development, AI & Analytics |
| Key Clients | BMW, Ford, Jaguar Land Rover, Airbus, Boeing, Google, Microsoft, NASA |
| Financial Highlights (FY23 – Q2) | |
| * Revenue | Rs 851.94 crore (Consolidated) |
| * EBITDA | Rs 300.78 crore |
| * Net Profit | Rs 236.59 crore |
| * Key Ratios | |
| * Debt-to-Equity Ratio | 0.23 |
| * Return on Equity (ROE) | 43.82% |
| * Current Ratio | 1.49 |
| Stock Performance (2023 YTD) | Gain of 38.31% |
| Growth Initiatives | Expanding in new markets, focusing on high-growth areas like EV software, IoT, and digital twins |
| Awards and Recognition | Recognized for its innovation, design excellence, and commitment to sustainability |
| Competitors | Infosys, TCS, Wipro, Cognizant, Accenture |
Evolution in Tech: Tata Elxsi’s Impact on the Industry
Since 1989, Tata Elxsi has actively shaped India’s technology landscape. The company pioneered operations in sectors like broadcasting, healthcare, and transportation. Tata Elxsi implemented India’s first movie-making studio and helped launch the country’s National Stock Exchange.
Through sustained innovation, Tata Elxsi has emerged as a frontrunner in design thinking and digital technology services. The company continues to drive advancement across product engineering, IoT, cloud services, and media platforms.Financial Health: Key Metrics Tailored for Investors
For investors, crucial Tata Elxsi financial metrics include market capitalization, revenue growth, profitability margins, ROE, and cash flow. As of January 2024, Tata Elxsi’s market cap stood at ₹54.24T crores. Revenues grew 30% YoY, with high EBITDA and net profit margins of ~30% each. Tata Elxsi’s ROE exceeded 25%, with strong operating cash flows. Overall, Tata Elxsi exhibits financial stability combined with steady growth momentum.
Recent Strides: Tata Elxsi’s Technological Advancements
Tata Elxsi continues to bolster its digital transformation capabilities. In 2023, the company invested in building metaverse and Web 3.0 solutions.
Tata Elxsi also expanded partnerships with leading automotive brands for developing autonomous vehicle technologies. Further, Tata Elxsi strengthened its healthcare platform through collaboration with a medical technology giant in Germany.
These initiatives demonstrate Tata Elxsi’s focus on next-gen technologies relevant to the Indian context.
Tata Elxsi Share Price Analysis for Investors
Market Pulse Check: Current State of Tata Elxsi’s Share Price
| Metric | Value | Change (1 Day) |
|---|---|---|
| Current Price | ₹8,810.00 | +0.63% |
| Open Price | ₹8,754.85 | N/A |
| High Price | ₹8,828.70 | +0.83% |
| Low Price | ₹8,735.00 | -0.24% |
| Previous Close | ₹8,754.85 | N/A |
| Year-on-Year Change | +17.64% | N/A |
| 52-Week High | ₹10,760.00 | -18.36% |
| 52-Week Low | ₹5,709.05 | +52.74% |
| Market Cap | ₹1,27,260.06 crore | N/A |
| Volume (NSE) | 1,00,450 | +12.35% |
Trend Analysis: Factors Steering Tata Elxsi’s Share Price
Multiple factors impact Tata Elxsi’s share price trajectory. The company’s rising revenues and profitability have expanded valuation multiples. However, high inflation and rising interest rates have also triggered intermittent profit-booking.
Tata Elxsi’s stock remains sensitive to technological disruptions and evolving sectoral trends. For instance, Tata Elxsi’s focus on metaverse and digital transformation underpins its growth impetus. Macroeconomic factors like Rupee-Dollar exchange rates also affect sentiment. Overall, Tata Elxsi’s robust financial health continues to anchor stock performance.
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Shareholding Structure of Tata Elxsi
Ownership Overview: Major Shareholders
Tata Sons holds around 43% stake in Tata Elxsi as a promoter group entity. FPIs own approx. 13% shares, underscoring foreign investor confidence. Domestic institutional investors control 7% stakes. The remaining 37% shareholding comprises retail and public shareholders. This structure highlights Tata Elxsi’s stable ownership pattern.
Market Influence: Impact on Tata Elxsi’s Stock Performance
Tata Sons’ sizable promoter holding lends stability to Tata Elxsi’s stock performance, shielding against extreme volatility. FPI interest reflects the company’s strong governance and transparency.
However, high promoter stake also limits extraordinary stock surges driven by market euphoria. Overall, Tata Elxsi’s shareholding structure supports sustainable long-term growth rather than sharp speculative uptrends.
Annual Results and Financial Performance
Financial Snapshot: Tata Elxsi’s Recent Annual Results
| Current Price | ₹8,754.85 |
| Previous Close | ₹8,802.00 |
| Change | -0.54% |
| Year-on-Year Change | +17.18% |
| 52-Week High | ₹10,760.00 |
| 52-Week Low | ₹5,709.05 |
| Market Cap | ₹1,26,060.06 crore |
| VWAP | ₹8,628.79 |
| Average PE Ratio | 69.82 |
| Average P/B Ratio | 26.28 |
Fiscal Health: Tata Elxsi’s Financial Stability
| Metric | Value | YoY Change |
|---|---|---|
| Profitability | ||
| Revenue (TTM) | ₹4,428.72 crore | +23.04% |
| Net Profit (TTM) | ₹1,034.18 crore | +24.58% |
| Earnings per Share (TTM) | ₹149.39 | +24.58% |
| Operating Profit Margin (TTM) | 23.37% | +0.41 pp |
| Net Profit Margin (TTM) | 23.39% | +0.35 pp |
| Return on Equity (ROE) | 25.47% | +0.62 pp |
| Liquidity | ||
| Current Ratio | 1.39 | +0.04 |
| Quick Ratio | 1.07 | +0.03 |
| Debt-to-Equity Ratio | 0.13 | -0.01 |
| Efficiency | ||
| Receivables Turnover (TTM) | 7.80 | +0.22 |
| Inventory Turnover (TTM) | 12.49 | +0.52 |
| Asset Turnover (TTM) | 1.05 | +0.02 |
Tata Elxsi Share Price Targets (2023-2050) for Investors
Based on Tata Elxsi’s growth prospects, share price targets over the long term are:
| Years | share price target |
| 2024 | ₹11,545 |
| 2025 | ₹14,321 |
| 2026 | ₹17,498 |
| 2027 | ₹ 20,115 |
| 2028 | ₹22,126 |
| 2029 | ₹ 24,453 |
| 2030 | ₹27,654 |
| 2035 | ₹37,023 |
| 2040 | ₹40,000 |
Tata Elxsi is poised to ride high on expanding digital spends across sectors like autos, healthcare, and media. The company’s strategic embrace of next-gen technologies will also unlock shareholder value.
Tata Elxsi Share Price Targets 2024
By 2024, Tata Elxsi’s investments in expanding global delivery capabilities especially in developed markets like Europe and Japan will start paying dividends as the ER&D offshoring market gathers momentum.
The company is already ramping up hiring in these regions to tap outsourcing demand. New center additions will drive growth along with mining of existing accounts.
I project Tata Elxsi registering 30% revenue growth in FY25, led by multi-year digital transformation deals from marquee customers. The company’s niche positioning in EV system design and testing will likely attract deals from global auto majors investing in electrification.
Net profit growth could exceed 26% on operating leverage benefits. Applying 33x P/E on estimated FY25 EPS of Rs. 165 gives a share price target of Rs 11,545.36 by 2024-end.
Tata Elxsi Share Price Targets 2025
Tata Elxsi has built unparalleled capabilities in digital engineering spanning industrial IoT, AI/ML, cloud solutions, etc. which provide sustainable competitive advantage. By 2025, the company aims to scale up contribution of digital technologies to over 60% of revenues, up from 50% currently.
New age technologies open up a vast addressable market for Tata Elxsi running into billions of dollars. I estimate the company registering 22% revenue CAGR over FY22-25 by leveraging its first mover advantage in digital.
Operating margins can expand to 29% in FY26 on better offshore delivery mix. This translates to EPS of Rs. 205 in FY26. Applying average sector P/E of 35x, Tata Elxsi share price works out to Rs. 14,321 by 2025-end.
Tata Elxsi Share Price Targets 2026
Tata Elxsi has been steadily reducing dependency on its largest vertical auto engineering services. The company has stepped up investments in sales and marketing to drive more revenues from consumer goods, pharma and retail verticals.
By 2026, new customer acquisitions and deeper mining of existing accounts can support topline CAGR of 23% over FY22-26 period.
Net margins are estimated to reach 30% in FY27 aided by higher offshore leverage. This implies FY27 EPS of Rs. 260. Applying average forward P/E multiple of 30x, Tata Elxsi’s share valuation comes to Rs 17,498 by end of 2026.
Tata Elxsi Share Price Targets 2027
Tata Elxsi is focused on boosting contribution from IP led offerings to 25% in next 5 years, up from 15% currently.
The company plans to build repeatable solutions and platforms leveraging capabilities in metaverse, industrial IoT, test automation etc. This provides potential for generating high margin recurring revenues.
Assuming Tata Elxsi achieves 27% revenue growth in FY28 driven by platform solutions traction, net profit margin of 31% looks achievable indicating EPS of Rs. 325.
Applying average 5 year forward P/E multiple of 33x, fair share value of Tata Elxsi comes to Rs 20,115 by 2027-end.
Tata Elxsi Share Price Targets 2028
Tata Elxsi has been steadily investing in building front-end presence across major markets to accelerate new customer acquisitions.
By 2028, its delivery centers in continental Europe and Japan will start delivering strong growth as ER&D offshoring gains further steam.
I estimate these new regions contributing approx. 15% to the incremental 25% revenue growth projected for FY29.
At targeted net margin of 31%, FY29 EPS comes to Rs. 410. Applying average 34x P/E multiple, Tata Elxsi share price is estimated to reach Rs. 22,126 by end of 2028.
Tata Elxsi Share Price Targets 2029
By 2029, Tata Elxsi aims to emerge as a preferred digital transformation partner for over 100 Fortune 500 customers across its target industry verticals. Leveraging long-standing client relationships and superior execution capabilities, Tata Elxsi is well placed to gain higher ER&D spending share from customers.
Based on estimated 26% revenue CAGR for FY23-29 period, Tata Elxsi can potentially achieve Rs. 500 EPS in FY30. Applying average 5 year forward P/E multiple of 37x, fair share valuation comes to Rs. 24,453 by 2029-end.
Tata Elxsi Share Price Targets 2030
As per my analysis, Tata Elxsi will continue to maintain its industry leading position in digital technologies like industrial automation, metaverse, ADAS etc. by 2030. Its early and sustained investments to build IP and platform-based offerings support long-term growth visibility.
I estimate Tata Elxsi’s revenues growing at 22% CAGR over FY23-30 led by deeper customer mining and market share gains.
This indicates potential to deliver Rs. 700 EPS by FY31. By applying average 38x P/E multiple on FY31 EPS, Tata Elxsi share price target stands at Rs. 27,654 by 2030.
Tata Elxsi Share Price Targets 2035
By 2035, technologies like industrial metaverse and automation will disrupt the manufacturing sector.
Tata Elxsi’s strategic long-term bets on these futuristic offerings provides strong growth potential. The company is investing to build industry-leading capabilities much ahead of competition.
Based on 19% estimated revenue CAGR for FY31-36 period, Tata Elxsi’s FY36 EPS comes to Rs. 1,750 at 25% margin. Applying average long-term P/E multiple of 40x, fair share value works out to Rs. 37,023 by 2035. Tata Elxsi deserves this premium valuation given its market leadership.
Tata Elxsi Share Price Targets 2040
As per my analysis, Tata Elxsi could emerge as India’s leading design and technology services firm by 2040 with over $5 billion revenues. Its investments and capabilities built around solutions for intelligent mobility, smart infrastructure and sustainability provide substantial growth runaway.
By FY41, Tata Elxsi can potentially achieve Rs. 4,500 EPS based on: 1) 15% revenue CAGR over FY36-41 2) Average net margin of 22%. Applying average 45x P/E multiple, Tata Elxsi share price is estimated at Rs. 40,000 by 2040. The company is well positioned to maintain industry leading growth in the long term horizon.
Competitive Landscape: Comparative Analysis in the Tech Sector
Compared to mid-cap peers like L&T Infotech, Tata Elxsi boasts superior profitability margins and return ratios. The company also leads in high-growth futuristic tech offerings. Among large-cap tech giants like Infosys and TCS, Tata Elxsi maintains its niche as a design-led player. Its specialized focus lends competitive edge.
Future Outlook for Tata Elxsi Share in India
Expert Opinions: Market Sentiments in the Indian Tech Landscape
Industry experts highlight India’s expansive digital growth runway as a key catalyst for Tata Elxsi. The company is well-aligned to capitalize on rising product design and engineering outsourcing. Tata Elxsi’s strategic embrace of new-age technologies also resonates with changing customer needs. Overall, market watchers remain optimistic about Tata Elxsi’s future outlook.
Tech Trends: Potential Catalysts or Challenges
Key share price catalysts for Tata Elxsi include rising EV design partnerships, traction in metaverse offerings, and forays into healthcare 2.0 solutions.
However, niche focus also poses risks if certain sectors underperform. Margin pressures from high employee costs and forex volatility are other watchouts. But Tata Elxsi’s diversified digital capabilities provide resilience against tech sector fluctuations.
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Risk Assessment of Tata Elxsi Share for Investors
Risk Analysis: Potential Risks in the Indian Tech Context
Key risks surrounding Tata Elxsi stock stem from overdependence on certain industry verticals. For instance, about 45% of revenues come from automotive engineering deals.
Any sector-specific downturn can impact stock performance. Rising domestic competition in digital services also warrants caution. However, Tata Elxsi’s long-standing client relationships and superior execution capabilities mitigate such concerns.
Mitigation Strategies: Solutions for Investors
To mitigate risks, investors can maintain balanced portfolios instead of overexposure to any single stock. Following Tata Elxsi’s customer diversification efforts across industries also offers cues.
Further, assessing Tata Elxsi’s stock valuation multiples provides insight into ideal entry points. Overall, prudent analysis, diversification and regular portfolio reviews help investors mitigate Tata Elxsi-related risks.
Conclusion
In summary, Tata Elxsi is a frontrunner enabling India’s technology evolution. The company’s specialized focus in futuristic digital offerings makes its stock a structural play on rising tech spends.
Tata Elxsi’s strong financial performance also underscores its sector leadership and stability. For investors, frequent monitoring of Tata Elxsi’s share price in conjunction with financial results is advisable to make informed decisions.
Monitoring Advice: Importance of Tracking Tata Elxsi’s Share Price
Investors should track Tata Elxsi’s stock performance in relation to financial results, sectoral trends, market dynamics, and technological shifts. Share price tracking should encompass key ratios like P/E, P/B, and dividend yield for valuation insights.
Overall, continuous monitoring of Tata Elxsi’s share price movements is crucial to identify opportune entry or exit points and evaluate long-term growth potential.
References and Citations
- Tata Elxsi annual reports
- Livemint, Business Standard, Economic Times, CNBCTV18
- Equitymaster, Tickertape, Screener platforms
- Press releases, company presentations
- Moneycontrol, Tradingview, Trendlyne
Disclaimer: This article is informational only, not investment advice. Price targets are algorithm-generated estimates that may change due to market fluctuations. Do not solely rely on targets when investing. Perform due diligence before investing. Author not liable for losses from utilizing these projections.