Why This Tata Stock Is Climbing 3% Today


Shares of Tata Elxsi surged up over 3% on Wednesday morning to hit an intraday high of ₹7,694.40.

What Happened: The surge today comes as the company posted its numbers for the quarter ended September in the after-market hours of Tuesday. The Tata Group company’s net profit stood at ₹200 crore for the September quarter, going up 14.8% from the ₹174.3 crore reported in the same period last year. On a sequential basis, the net profit rose by 5.9% from ₹188.9 crore in the June 2023 quarter.

During the July-September period, the company’s revenue from operations reached ₹881.7 crore, marking a 15.5% surge from the ₹763.2 crore reported in the year-ago period. On a quarter-to-quarter basis, the revenue increased by 3.7% from ₹850.3 crore recorded in the April-June period.

See Also: Why Bajaj Finance Shares Dipped Nearly 1% After Q2 Print

EBITDA for the quarter came in at ₹263.6 crore, marking a 16.3% increase compared to ₹226.5 crore in the corresponding period of last year. The EBITDA margin for the July-September period stood at 29.9%. Earnings per share (EPS) for the quarter stood at ₹32.12.

Reacting to the results Morgan Stanley maintained its “underweight” rating for the stock with a price target of ₹6,400, indicating an around 13% downside from the stock’s last closing price of ₹7,445.35. The research firm said that the company will need strong execution to meet future estimates and the room for EPS improvement is also limited. The analysts also added that at the current valuation, the risk-to-reward ratio is unfavourable.

Take Stock Of The Week Ahead

Get all the latest Share Market trends and news to set you up for the week ahead.

You have successfully subscribed.

Price Action: Tata Elxsi’s share price was up 2.67% to trade at ₹7,643.95 in the early hours of trading on Wednesday.

Read Next: Why Tata Motors Shares Are Upbeat Today

Posted In: EarningsEquitiesNewsPrice TargetReiterationMarketsAnalyst RatingsMoversTrading IdeasTata ElxsiTata Group