Tata Elxsi hits new excessive, rallies 36% in 9 days post stellar Q4 results

Shares of Tata Elxsi zoomed 16 per cent to Rs 4,089.70 on the BSE in intra-day commerce on Tuesday, extending its earlier week’s rally after the Tata Group IT company reported a stellar set of March quarter (Q4FY21) numbers. In the 9 buying and selling periods since April 22, the stock has surged 36 per cent, as in comparison with 2.4 per cent rise in the S&P BSE Sensex. In the previous one year, it has zoomed 432 per cent, in opposition to 54 per cent soar in the benchmark index.

In Q4FY21, Tata Elxsi’s revenues elevated 8.7 per cent quarter-on-quarter (QoQ) to Rs 518 crore, primarily led by 3.9 per cent QoQ progress in transportation, 5.8 per cent QoQ progress in broadcast & communication and 13.3 per cent QoQ progress in healthcare. Earnings earlier than curiosity, taxes, depreciation, and amortization (Ebitda) margin elevated from 30.1 per cent to 32.4 per cent on account of upper offshoring and glued worth tasks. The revenue after tax, in the meantime, rose 9.5 per cent QoQ to Rs 115.20 crore.

The company additionally introduced a ultimate dividend of Rs 24 per share for the year 2020-21 together with a one-time particular dividend of Rs 24 per share, topic to tax.

The company stated progress was led by America and India with each reporting a 21.1 per cent QoQ progress whereas Europe grew by 1.6 per cent. Both transportation and media and communications reported one other regular quarter of sustained progress whereas the healthcare business continues to develop quicker. We have seen new buyer additions and huge offers in all three trade segments in the quarter, it stated.

The company additional stated that it added key new prospects together with a Tier-1 operator and a number one medical units producer in North America. It additionally closed some giant offers together with a multi-million greenback take care of a worldwide OEM for an built-in linked automobile program in one in every of their key markets that may leverage IoT platform.

HDFC Securities stated its optimistic view on Tata Elxsi is based on robust scalability in the business (>20 per cent CAGR over FY21-24E), superior execution framework, led by low value of supply (excessive offshoring, low attrition, low sub-con dependence), potent trade drivers (CASE, OTT & new media), IP offers and powerful partnerships (Google Widevine) augmenting progress, enhancing progress visibility with pick-up in deal wins (together with robust pipeline inside giant accounts) and investments to drive greater period annuity offers, and stronger money era (70 per cent progress in OCF/FCF).

At 12:40 pm, the stock was buying and selling 11 per cent greater at Rs 3,934 on the BSE, as in comparison with 0.18 per cent acquire in the S&P BSE Sensex. The buying and selling volumes on the counter practically doubled with a mixed 640,000 fairness shares altering arms on the BSE and NSE, thus far.

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