Tata Elxsi shares down 5% after Q4 results; brokerages cut target price

Tata Elxsi Q4 results, Tata Elxsi share price, Tata Elxsi share price target: Tata Elxsi shares on Wednesday, April 24 declined after the provider of design-led technology services reported a 2.2 per cent decline in net profit at Rs 196.93 crore in the fourth quarter ended in March on Tuesday. 

The Tata group stock declined as much as 5.34 per cent to the day's low of Rs 7,000 in early morning deals on NSE. Extending the declining trend for the fifth session, the counter traded at Rs 7,128.8, down 3.6 per cent at 9:40 AM. 

The company had posted a net profit of Rs 201.51 crore in the same period of the previous fiscal, Tata Elxsi said in a regulatory filing.

Revenue from operations in the quarter under review stood at Rs 905.94 crore as against Rs 837.91 crore in the year-ago period, it added. The company said its total expenses were higher at Rs 677.21 crore compared to Rs 613.39 crore a year ago. Read more on Tata Elxsi Q4 results

Tata Elxsi dividend

Tata Elxsi's board has recommended a final dividend of Rs 70 per equity share of par value of Rs 10 each, for the financial year ended March 31, 2024, subject to approval by the shareholders of the company at the annual general meeting. Read more on Tata Elxsi dividend

Management Outlook 

"Financial year 2024 has been a year of consistent operational performance with a revenue growth of 13 per cent despite global macroeconomic uncertainties, and volatility in the media and communications industry over the last few quarters," Tata Elxsi CEO and Managing Director Manoj Raghavan said.

On the outlook, he said, "We are entering the new financial year with a commitment for growth, and the continued confidence in our differentiated design-led engineering capabilities."

Tata Elxsi share price target

Morgan Stanley has maintained an underweight call on Tata Elxsi. The brokerage has slashed the target to Rs 6,860 from Rs 7,300 earlier. 

According to the global brokerage, Q4 was a miss but management sounded constructive on revenue growth in FY25. Good commentary may not be enough given the burden of higher expectations and steep valuations, the brokerage said in its note. 

The brokerage has trimmed its earnings per share (EPS) of 3.9 per cent and 5.4 per cent for FY25 And FY26. 

JP Morgan too has retained an underweight call with a cut in target to Rs 5,800 from Rs 6,000 earlier. 

(with PTI inputs)

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