Tata Elxsi Share Price Target 2023, 2024, 2025-2030: Investing in Technology?

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Here in this post we will analyze all about Tata Elxsi, their fundamentals, future plans, company’s outlook, their financials, shareholding patterns etc , Based on company’s fundamentals and technical analysis, we will try to predict Tata Elxsi share price target 2023,2024,2025 and 2030.

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Tata Elxsi Share Price Prediction

About Tata Elxsi

Tata Elxsi is a part of TATA Group, is a global design and technology services company. Tata Elxsi is amongst the world’s leading providers of design and technology services across industries including Automotive, Broadcast, Communications, Healthcare, and Transportation.

Tata Elxsi is helping customers reimagine their products and services through design thinking and the application of digital technologies such as IoT (Internet of Things), Cloud, Mobility, Virtual Reality, and Artificial Intelligence.

The Company’s vast pool of knowledge has enabled it to work with global leaders in Broadcast, Consumer Electronics, Media and Entertainment, Healthcare, Semiconductor, Telecom and Transportation industries.

Tata Elxsi Lateat News

Tata Elxsi Q3 Results:

  • TATA Elxsi delivers steady growth in Q3FY23 with 7.2% QoQ growth in revenues and PAT growth of 11.7% QoQ
  • Sales rose 28.69% to Rs 817.74 crore in the quarter ended December 2022 as against Rs 635.41 crore during the previous quarter ended December 2021.
  • Net profit of Tata Elxsi rose 28.96% to Rs 194.68 crore in the quarter ended December 2022 as against Rs 150.96 crore during the previous quarter ended December 2021.

Tata Elxsi Share Price Target 2023: Technical Analysis

Tata Elxsi share price is trading near it’s support level, currently share is trading around Rs 6175, next strong support is near Rs 5400. If the tata elxsi share started to trade below this level then we could see further downside.

tata elxsi share chart
Tata Elxsi Share Chart

If the tata elxsi share take support and bounce back from this level then the first target for tata elxsi share would be Rs 7000 and second target would be Rs 8000.

Tata Elxsi Share Price Target 2023

YearTata Elxsi share price in 2023
2023₹7000 to ₹8000
Tata Elxsi Share Price Target 2023 Table

Company Overview

Company NameTata Elxsi Ltd
  
Market Cap (Cr.) 38,811
  
52 W High / Low₹ 10,760 / 5,708
  
Stock P/E70.63
  
Book Value₹  272
  
P/B (Price to Book Value)22.91
  
Face Value₹ 10.0
  
ROCE47.7%
  
ROE37.2%
  
Dividend Yield0.68 %
  
Tata Elxsi Financial Highlights Table

Tata Elxsi Business Overview:

Tata Elxsi is amongst the world’s leading design and technology services providers in the chosen verticals of transportation, media, communications and healthcare.

Key Points:

  • Geographical revenue contribution : The US contributing 42%, Europe 31% and India 16% as against 37%, 35% and 13%, respectively, clocked in 2020-21.
  • They have more than 9,375 employees in 35 offices  across the globe and have presence in more than 15 countries.
  • Tata Elxsi have 27 patents granted and filled for 104 patents.

Tata Elxsi operations are classified into two business divisions:

  1. Software development and services
  2. Systems integration and support

Software development and services

Tata Elxsi’ software development services division provides design led technology and engineering services. During 2021-22, the Software Development and Services division generated Rs. 2,421 crores in revenues, registering a growth of 35.9% YoY.

The four segments under this division are transportation, media and broadcast, healthcare and industrial design.

Transportation: The Transportation vertical posted strong growth of 29% YoY, generating Rs. 887 crores which is 36% of Tata Elxsi’s operating revenue.

Media, Broadcast and Communication: Media, broadcast and communications, was a major contributor to  Company’s revenue, accounted for 39% of Tata Elxsi operating revenues. Total revenue generated from the segment stood at Rs. 960 crores, reporting a growth of 32% compared to the 2020-21.

Healthcare: The healthcare segment contributed 12.5% to total revenues and grew by 72% compared to 2020-21. It contributed Rs. 308 crores to the overall revenues of the Company.

INDUSTRIAL DESIGN AND VISUALISATION:  IDV performance showed a robust growth during the year. The revenue of IDV grew by 36% from 2020-21 and stood at Rs. 262 crores.

Systems integration and support

The Company provides system integration and support services for specialised applications, including experience centres, training and safety, and design visualisation.

Customers in industries like automotive, aerospace, entertainment, manufacturing, Government, and education benefit from our expertise in implementing complicated design solutions.

They offer solutions and services, including professional services for cloud and infrastructure management, virtual reality (VR), and 3D printing.

Revenue generated through system integration stood at Rs. 54 crores, reporting growth of 18% from 2020-21.

INDUSTRY OVERVIEW

  • According to NASSCOM, India’s contribution to the global ER&D market is predicted to increase from US$ 31 Billion in CY 2019 to US$ 63 Billion by CY 2025 at a CAGR of 12-13%.
  • With a 10-15% market share, the India is gradually establishing itself as an engineering and design centre for automobiles, aerospace, consumer electronics, machinery, and semiconductors.
  • According to Zinnov and JP Morgan estimates, the Indian ER&D offshoring market is expected to increase from US$ 36 Billion in 2020-21 to US$ 117 Billion in 2030-31.
  • It is expected that Indian ER&D service provider’s market would be witnessing at an impressive CAGR of around 17%.
  • Tata Elxsi provides various ER&D services for Transportation, Media & Broadcasting and Healthcare verticals, which benefits from the current upcycle in ER&D spend.
  • The Company offers its services to high demand markets like US and European countries – generating almost 75% of its revenue from these geographies

Automotive Industries

  • According to a report published by Deloitte, the global demand for new electric vehicles (EVs) is expected to grow from 2.5 Million units in CY 2020 to 31.1 Million by CY 2030.
  • It is expected that with a gradual shift to electric vehicles in the coming years, the adoption of automated driving/ advanced driver assistance systems, in-car infotainment systems and other related technologies would also witness strong growth.
  • The Company provides various software development services, with strong capabilities in AUTOSAR, ADAS, V2X, digital cockpit and other related technologies.

Media, Broadcast and communication

  • According to Grand View Research, in CY 2021, the global telecom services market was roughly worth US$ 1,708 Billion. It is estimated to record a CAGR of 5.4% from CY 2021 to CY 2028.
  • The OTT market is currently valued at US$ 44.5 Billion and is expected to reach US$ 139 Billion in CY 2028, with a CAGR of 17.7%.
  • Tata Elxsi has developed and deployed various solutions like TEPlay – an OTT/IPTV platform, QoEtient– an agentless test and automation platform for video quality of experience, and iCX for management and monitoring of customer premises equipment (CPE) like set-top boxes and gateways.

Healthcare

  • Over the years, medical device, pharmaceutical, and healthcare industries have all expedited their adoption of digital technologies due to highly competitive marketplaces and dynamic business requirements
  • The digital health market itself is expected to grow to more than US$ 400 Billion by CY 2025.
  • Tata Elsi’s TEngage is a scalable, cloud-first digital health platform for omnichannel care that allows hospitals and healthcare providers to offer multimodal touchpoints throughout the patient journey
  • TEDREG, a yet another innovation of Tata Elxsi, is a regulatory intelligence platform which provides actionable insights to the manufacturers for new market launches and product sustenance.

Performance of the company:

Pros:

  • Company is expected to give good quarter
  • Company has delivered good profit growth of 25.9% CAGR over last 5 years
  • Company has a good return on equity (ROE) track record: 3 Years ROE 31.6%
  • Company has been maintaining a healthy dividend payout of 56.5%
  • Company regularly generating profit from their operations.
  • Company reserves are regularly increasing.
  • Company have very low debt, almost debt free.
  • Company have a unique business model.

Cons:

  • Stock is trading at 22.9 times its book value

Tata Elxsi Share Price Target 2024-2025

Tata Elxsi Share Price Target 2024

YearTata Elxsi share price Target
2024₹9000 to ₹10250
Tata Elxsi Share Price Target 2024 Table

Tata Elxsi Share Price Target 2025

YearTata Elxsi share price in 2025
2025₹12000 to ₹12750
Tata Elxsi Share Price Target 2025 Table

SUBSIDIARY/ASSOCIATE COMPANIES:

Tata Elxsi have no subsidiaries company.

Tata Elxsi Shareholding Patterns:

HoldingsYear 2022(Sept)%
Promoters43.92
FIIS15.37
DIIS3.91
Public36.80
Tata Elxsi Shareholding Patterns Table

Tata Elxsi Share Price Target 2030:

YearTata Elxsi share price in 2030
2030₹18000 to ₹19500
Tata Elxsi Share Price Target 2030 Table

Conclusion:

Tata Elxsi is a strong fundamental based company under strong controlling hand Tata Group. Company’s most operations  are in digital segment, and  as we have already entered in digital world, so in coming years we could expect a good growth in the company.

This is the end of the post Tata Exxsi share price target 2023, 2024, 2025-2030, hope you get some information from it, write your valuable suggestion below in comment section.

Source: Tata Elxsi Annual Report

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