Shares of midcap Tata Group company- Tata Elxsi gained in early trade by as much as 3 per cent to day's high of Rs 7,980.3 even as the company posted steady Q2 results in the September quarter. . The margin at the design and technology entity also edged higher by just 70 bps to 27.9 per cent as against 27.2 per cent in the previous quarter.

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The company's net profit for the quarter ended September 30 came in at Rs 229.4 crore, marking an increase of 24.6 per cent sequentially. Its quarterly revenue grew 4.2 per cent to Rs 965.1 crore, according to a regulatory filing. 

Ahead of its results, the stock ended at Rs 7,762.35 per share on the BSE.

Should you buy, sell or hold Tata Elxsi shares after Q2?

Morgan Stanley has continued with its underweight call on the stock with a target of Rs 6,860, implying potential downside of 12 per cent.

With muted 2Q, F25e revenue growth exceeding F24 appears a tall task, said the global brokerage. Healthcare may recover from 3Q & transportation deal wins to support growth, but emerging industry caution in European auto, limited growth visibility in media, & premium valuation keeps the brokerage underweight on the stock.

About the company

The company is amongst the world’s leading providers of design and technology services across industries including Automotive, Broadcast, Communications, Healthcare, and Transportation.i