Is This Right Time To Buy Tata Elxsi Or Think, Complete Analysis & Performance

Is This Right Time To Buy Tata Elxsi Or Think, Complete Analysis & Performance

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Indian IT industry has increasingly attracted the attention of investors in recent times.

Despite being affected by many factors like global economic crisis, slowdown in startup funding, the IT industry has shown good performance. In this article we will learn about one such excellent IT sector company, TATA ELXSI.

Tata Elxsi is a world leading provider services company providing design and technology services across industries including automotive, broadcast, communications, healthcare and transportation.

Tata Elxsi is a subsidiary of the Tata Group and as it is known, is part of the Tata Group of India. One of the largest groups.

Also growing in the field of digitalization, Tata Elxsi is working to deliver products and services to customers using design thinking and application of digital technologies such as IoT, Cloud, Mobility, Virtual Reality and Artificial Intelligence.

What does Tata Elxsi do?

Tata Elxsi, a Tata Group company, is the world’s leading provider of end-to-end product engineering and design services to diverse industries.

Its services include products and services built on design thinking and application of digital technologies such as IoT (Internet of Things), Cloud, Mobility, Virtual Reality and Artificial Intelligence.

Some of the main customers of the company include multinational companies like Ford, Nissan, Mahindra, Jaguar Land Rover, Motorola, Comcast, Panasonic.

Along with this, it is also focusing on new applications keeping in mind the needs of the near future. The company has its own portfolio of patents and IP solutions across industry sectors.

Tata Elxsi has given a return of 21,785.57% to its shareholders since its listing. With this, Tata Elxsi has included its name among the highest returning IT stocks in the last ten years.

Last year’s performance of Tata Elxsi

Despite the challenges arising amid the pandemic, Tata Elxsi witnessed significant progress during 2021-22.

And in this financial year 2020-21, the company started the Global Engineering Center (GEC) with Schaeffler Technologies AG & Co. KG, which has become a leader in the world today.

During the same year, the company also led growth in revenue, profit, margin, cash generation and return on capital.

The company’s healthcare businesses, transportation and media and communications also recorded good growth. The company also launched the Employee Value Proposition in the year 2023.

The scheme ‘Home to a Billion Possibilities’ showcases the company’s growth and rich job experiences in the right place.

Automotive industry

Today’s era is changing rapidly, and the demand for new electronics vehicles is expected to increase and the demand for predictive technologies is also expected to increase.

Because advances in machine learning and AI seem to clear the way for this growing demand.

The company aims to satisfy its customers first and foremost and has developed strong capabilities in providing services and solutions for the CASE (Connected, Autonomous, Shared and Electric) trends in the automotive industry with the aim of developing a seamless passenger experience. .

Similarly, Tata Elxsi has developed various software development services with high quality capabilities in AutoSAR, ADAS, V2X, Digital Cockpit and other related technologies in view of the increasing demand for digitalization in the automotive sector.

Should you buy Tata Elxsi at the current price?

The current share price of Tata Elxsi is quite high, due to which cautious investors remain hesitant about investing. To understand such a situation, it is necessary to analyze its historical stock prices, which are as follows:

  • On 17-01-2014 around 181
  • On 03-01-2015 around 303
  • On 01-01-2016 1125
  • On 19-01-2018 1038
  • On 17-01-2020 947
  • On 07-01-2022 5799
  • On 6-01-2023 6193

In this way its share price can be seen fluctuating,
However, it is worth noting that if the company’s growth is strong, the stock will be seen trading at a higher valuation.

OTE and Tele Market

Digitalization is happening rapidly in business, education, entertainment and communication services. Given this, it is estimated that the global telecom services market will grow at a record CAGR of approximately 5.5% from CY 2021 to CY 2028.

This growth is due to the increasing demand for high-speed connectivity, increasing mobile users and digitalization of the economy.

Similarly, the OTT market is also expected to grow at around 17% CAGR in CY 2028, which is expected to enhance Tata Elxsi’s strong presence in this segment through differentiated solutions like TEPlay, QoEtient, and iCX.

Tata Elxsi competitors

Competitor
KPIT Technologies (KPIT)
Cyient Ltd. (CYIENT)
Infosys Ltd. (INFY)
Persistent Systems Ltd. (PERSYS)
Hexaware Technologies Ltd. (HEXA)

Tata Elxsi Share Price Target 2025

According to the information of Dec 2023, the company has seen a significant growth in revenue and net income.

Talking about its market cap, its market cap is around Rs 47,750 crore and the company is a large cap company, and it is a leading company through its services across the world.

And is continuously working to expand its market cap and as per the data of dec 2023, a good growth has been seen in the net income and revenue of the company, after which the increase in the revenue of the company is visible.

It can be estimated that with its further development in the near future, the Tata Elxsi share price target by 2025 may be at ₹8,800 and the second target at ₹10,000.

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