Tata Elxsi share price: Investors seemed distressed after the Q2 results were announced by Tata Elxsi Ltd today which was clearly visible on the stock movement. Tata Elxsi’s stock was deep in red as of 2:30 pm on both the indices.  

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On the BSE, the stock traded at Rs 7211.60 per share, which was 7.03 per cent down. On the NSE, the share price apiece was at Rs 7228.25, which was down by 7.13 per cent. 

Brokerage maintain underweight rating on Tata Elxsi 

JP Morgan 
Share Price Target: Rs 4,300

Morgan Stanley
Share Price Target: Rs 5,800 

Tata Elxsi’s Q2 result 
Company recorded a 6 per cent decline in net profit from Q1FY23. Company’s revenues from operations were at Rs. 763.2 Crore and the EBITDA Margin was at 29.7 per cent. Company’s profit before tax stood at Rs 219.17 crore registering a fall of 4 per cent QoQ. 

Transportation grew 3.8 per cent QoQ and 30.4 per cent YoY, aided by large deals in EV, ADAS and adjacencies in rail and offroad vehicles. Healthcare continued to grow at 8.2 per cent QoQ and 55.9 per cent YoY, driven by new product engineering and regulatory services. Media and Communications reports growth of 2.1 per cent QoQ and 22.2 per cent YoY, aided by platform-led deals and entry into new operator accounts. 

The management said that they are gaining market share in both Automotive and Media & Communications, especially in Europe. The numbers are muted in the region due to unfavourable currency movement. They further said that they are making significant investments in a growing leadership pipeline for delivery, technology and sales.