Tata Elxsi was listed on the NSE/BSE on September 17, 2003. In the last five years, the stock has given a massive return of more than 600%. Will Tata Elxsi continue to provide such great returns in the future as well? Let’s explore Tata Elxsi’s growth potential and Tata Elxsi share price target from 2025 to 2050.
About Tata Elxsi
Tata Elxsi is part of the Tata Group which offers design and technology services. It started in 1989 and works with various industries such as automotive, healthcare, media, and cellphone service. Tata Elxsi offers services like product design, software development, and digital solutions. Tata Elxsi is recognized for its expertise in artificial intelligence, cloud computing, and embedded systems. It works with clients all over the world to help them create smarter and more efficient products.
Tata Elxsi Business Model
- Product Engineering Services: Tata Elxsi offers engineering and designing solutions for products like cars, medical devices, and smart appliances.
- Software Development: They create software for industries like automotive, media, and healthcare.
- Design and User Experience (UX) Services: Tata Elxsi helps brands improve the look and feel of their products, websites, and apps.
- Integrated Systems and IoT Solutions: They develop computer chips and Internet of Things (IoT) solutions for smart devices.
- Artificial intelligence and data analytics: They provide AI-powered solutions for automation, customer insights, and beneficial business decisions.
- Cloud and Digital Solutions: They offer cloud computing and digital transformation services to help businesses move to cloud-based systems.
- License and trademark (IP) Sales: Tata Elxsi develops software tools and technologies that it licenses to businesses.
Tata Elxsi Fundamental Analysis
| Stock Name | Tata Elxsi Ltd. |
|---|---|
| NSE Symbol | TATAELXSI |
| Market Cap | ₹ 32203 Cr. |
| 52W High | ₹ 9083 |
| 52W Low | ₹ 5158 |
| Stock P/E | 39.8 |
| Book Value | ₹ 399 |
| Dividend Yield | 1.35 % |
| ROCE | 42.7 % |
| ROE | 34.5 % |
| Face Value | ₹ 10.0 |
| Shareholders | Mar 2023 | Mar 2024 | Dec 2024 |
|---|---|---|---|
| Promoters | 43.92% | 43.92% | 43.91% |
| FIIs | 13.85% | 14.56% | 13.27% |
| DIIs | 3.54% | 6.06% | 7.50% |
| Public | 38.67% | 35.47% | 35.30% |
| No. of Shareholders | 5,82,903 | 5,37,460 | 5,72,719 |
Key Factors Driving Tata Elxsi Future Growth
- Strong Demand for AI and Automation: Tata Elxsi is focusing on artificial intelligence and automation, which are in high demand across industries like healthcare, automotive, and media.
- Growth in Electric and Connected Vehicles: As more companies move towards electric and self-driving cars, Tata Elxsi’s expertise in automotive software and design services is becoming more valuable.
- Expansion in Healthcare and Medical Devices: Tata Elxsi is working on advanced solutions for the healthcare industry, such as AI-driven diagnostics and medical device software, which will drive future growth.
- Partnerships with Global Brands: Tata Elxsi is teaming up with big international companies in industries like automotive, telecom, and media, helping it expand its market reach.
- Innovation in Media and Entertainment: Tata Elxsi is developing advanced tools for content creation, streaming, and user experience, helping media companies improve their services.
- Growing Presence in Emerging Markets: Tata Elxsi is expanding its business in regions like Asia, Europe, and North America, tapping into new opportunities and customers.
- Investment in New Technologies: Tata Elxsi is continuously investing in new technologies like cloud computing, AI, and the Internet of Things (IoT) to stay ahead in the market.
Pros of Tata Elxsi
- Strong Sales Growth: Tata Elxsi has achieved a strong sales growth of 25% CAGR over the last three years.
- Strong Profit Growth: Tata Elxsi has achieved a strong profit growth of 29% CAGR over the last three years.
- High Return on Capital Employed (ROCE): Tata Elxsi has maintained an average ROCE of 42.6% over the last five years, which shows that the Tata Elxsi is using its capital efficiently to generate profit.
- High Return on Equity (ROE): Tata Elxsi has maintained an average ROE of 34.7% over the last five years, which shows that the Tata Elxsi is using shareholders funds efficiently to generate profits.
- Debt Free Company: Tata Elxsi is almost debt free company with a debt to equity ratio of 0.08, which shows its financial stability.
- Increase in DIIs Holding: Domestic Institutional Investors (DIIs) have increased their holding to 7.50% in December 2024 from 7.38% in September 2024, which indicates growing confidence in Tata Elxsi’s future potential by the DIIs.
Cons of Tata Elxsi
- Overvaluation Concern: Tata Elxsi is trading at a PE ratio of 40.7 and a (P/B) ratio of 28.4, which shows that its stock is significantly overvalued compared to its earnings and assets.
- Decrease in FIIs Holding: Foreign Institutional Investors (FIIs) have reduced their holding to 13.27% in December 2024 from 13.65% in September 2024, indicating a decline in FII’s confidence in Tata Elxsi’s future growth prospects.
| Years | Target Price |
|---|---|
| Tata Elxsi Share Price Target 2025 | ₹6,450 to ₹8,000 |
| Tata Elxsi Share Price Target 2026 | ₹7,750 to ₹10,450 |
| Tata Elxsi Share Price Target 2027 | ₹9,300 to ₹13,550 |
| Tata Elxsi Share Price Target 2028 | ₹11,150 to ₹17,600 |
| Tata Elxsi Share Price Target 2029 | ₹13,400 to ₹22,900 |
| Tata Elxsi Share Price Target 2030 | ₹16,000 to ₹29,750 |
| Tata Elxsi Share Price Target 2035 | ₹32,150 to ₹89,250 |
| Tata Elxsi Share Price Target 2040 | ₹64,300 to ₹2,67,800 |
| Tata Elxsi Share Price Target 2050 | ₹2,55,000to ₹16,00,000 |
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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