Why Tata Elxsi Shares Jumped Back In The Green Today

Tata Elxsi’s share price jumped back in the green on Friday breaking the two-day losing streak.

What Happened: The Tata Group company reported its earnings for the March quarter in the after-market hours on Thursday. The company’s standalone revenue from operation grew 23% year-on-year to ₹837.9 crore. A major chunk of the revenue came from the software services segment at ₹815.17 crore. System integration and services brought in revenues of ₹22.74 crore.

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The company’s EBITDA for the quarter stood at ₹249.73 crore. The EBITDA margin for the review period was 29.8%. The company posted a net profit of ₹201.5 crore, up close to 26% from the year-ago period. Earnings per share for the quarter stood at ₹32.36. The company also announced a ₹60.60/share final dividend for the year ended March 2023.

However, brokerages were not impressed by the company’s numbers. JP Morgan maintained its ‘underweight’ rating for the stock with a price target of ₹4,400. The firm stated that the company has seen a significant slowdown in growth momentum and the near-term outlook is weak. Morgan Stanley also maintained its ‘underweight’ rating for the stock with a price target of ₹5,610.

Price Action: Tata Elxsi’s share price was up 0.67% to trade at ₹7,042.65 in the late hours of trading on Friday.

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