Shares of Tata Elxsi were tanking in early trade on Tuesday as the company reported muted numbers for the quarter ended June.

What Happened: The Tata Group Company‘s profit for the June quarter stood at 188.85 crore, up around 2.2% from the ₹184.72 crore profit it booked in the same quarter last year. The company’s revenue from operations went up 17% to ₹850.27 crore as compared to ₹725.89 crore revenue it booked in the year-ago period. Both the topline and bottom line were slightly lower than consensus estimates.

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The company’s EBITDA came in at ₹251.46 crore, with an EBITDA margin of 29.6%. Earnings per share for the quarter stood at ₹30.32.

Reacting to the results research firm Morgan Stanley maintained its “underweight” rating for the stock with a price target of ₹5,700. The firm said that the company’s recent rally has made the risk-to-reward ratio unfavourable. Prior to the slump today, the stock had gone up close to 20% since the start of the year.

Price Action: Tata Elxsi’s share price was down 3.22% to trade at ₹7,471.30 as the markets opened on Tuesday.

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