Tata Elxsi Limited (TATAELXSI) AI Stock Analysis

• Market Cap: ₹341.22B
• Dividend Yield: 1.4%
• Average Volume (3M): 8.33K
• Price to Earnings (P/E): 45.8
• Beta (1Y): 1.26
• Revenue Growth: 1.83%
• EPS Growth: -5.37%
• Country: IN
• Employees: 12,969
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): 23.18
• Shares Outstanding: 62,290,638
• 10 Day Avg. Volume: 7,482
• 30 Day Avg. Volume: 8,326
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹5,197.00
• Price Target Upside: -2.69% Downside
• Rating Consensus: Strong Sell
• Number of Analyst Covering: 5

• Rating: 65 Neutral
• Price Target: ₹6,519.00 ▲(22.07% Upside)

Tata Elxsi Limited's strong financial performance, characterized by robust revenue growth and solid cash flows, is the most significant positive factor. However, technical analysis indicates bearish signals, with the stock trading below key moving averages and a negative MACD. The high P/E ratio raises valuation concerns, suggesting the stock might be overvalued. The absence of recent earnings call insights and corporate events means these factors do not influence the score.

Tata Elxsi Limited Business Overview & Revenue Model

Company Description

Tata Elxsi Limited is a leading global design and technology services company, part of the Tata Group. The company operates primarily in the sectors of automotive, broadcast, communications, and healthcare. Tata Elxsi provides a range of design and product engineering services, including system design and development, software and hardware development, and testing and validation services. The company is known for its innovative solutions in areas such as connected cars, autonomous driving, OTT (Over-the-top) and IoT (Internet of Things) solutions, helping clients enhance their product and service offerings.

How the Company Makes Money

Tata Elxsi makes money through a diverse range of revenue streams primarily driven by providing design and technology services to various industries. The company earns revenue by offering specialized services in product engineering and design, including system integration, software development, and testing services. Key revenue streams include long-term contracts with automotive and broadcast clients, where Tata Elxsi provides end-to-end solutions for connected and autonomous vehicle technologies, as well as OTT and digital media solutions. Significant partnerships with leading global companies in these sectors also contribute to its revenue, as does its focus on emerging technologies like IoT, AI, and cloud computing, which drive demand for its innovative solutions. Additionally, the company's healthcare solutions, which include digital health platforms and medical device design, further diversify its income sources. Tata Elxsi's extensive expertise, global clientele, and strategic partnerships underpin its earnings and support its growth trajectory.

Tata Elxsi Limited Financial Statement Overview

Summary

Tata Elxsi Limited presents a strong financial profile with consistent revenue growth and solid cash flows. Despite the recent EBIT decline, the company's profitability and balance sheet stability remain robust, supported by effective cash management and low leverage. The overall outlook is positive, albeit with attention needed on EBIT recovery.

Income Statement

Tata Elxsi Limited exhibits robust revenue growth with a strong upward trend over the years, despite a recent downturn in EBIT. The company maintained a consistent Gross Profit Margin around 38-39%, although the negative EBIT in the latest year is a concern. Net Profit Margin remains healthy, suggesting operational efficiencies outside of EBIT challenges.

Balance Sheet

The balance sheet is strong with low debt levels and a high equity ratio, indicating financial stability. The Debt-to-Equity ratio is low, reflecting effective management of liabilities. Return on Equity has been consistently solid, showcasing the company's ability to generate returns on shareholders' investments.

Cash Flow

Cash flow analysis reveals a positive trajectory with growing Operating and Free Cash Flows, indicating effective cash management. The Operating Cash Flow to Net Income ratio is stable, while Free Cash Flow growth reflects efficient capital expenditure management. The negative investing cash flow suggests active reinvestment in business operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	37.29B	37.29B	35.52B	31.45B	24.71B	18.26B
Gross Profit	13.89B	14.43B	11.50B	10.58B	10.56B	17.39B
EBITDA	11.20B	11.52B	11.69B	10.36B	8.11B	5.63B
Net Income	7.85B	7.85B	7.92B	7.55B	5.50B	3.68B
Balance Sheet
Total Assets	35.86B	35.86B	31.87B	27.64B	21.69B	17.17B
Cash, Cash Equivalents and Short-Term Investments	16.06B	16.06B	13.45B	11.81B	9.56B	8.53B
Total Debt	1.92B	1.92B	2.24B	1.82B	1.39B	732.10M
Total Liabilities	7.26B	7.26B	6.81B	6.78B	5.68B	3.65B
Stockholders Equity	28.61B	28.61B	25.06B	20.86B	16.01B	13.52B
Cash Flow
Free Cash Flow	0.00	7.96B	6.18B	4.23B	4.12B	3.99B
Operating Cash Flow	0.00	8.12B	7.01B	4.87B	4.83B	4.37B
Investing Cash Flow	0.00	-3.08B	-2.70B	-2.02B	-1.08B	-4.38B
Financing Cash Flow	0.00	-4.99B	-4.28B	-3.03B	-3.26B	-1.26B

Tata Elxsi Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5340.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TATAELXSI, the sentiment is Negative. The current price of 5340.45 is below the 20-day moving average (MA) of 5754.02, below the 50-day MA of 6032.49, and below the 200-day MA of 6090.37, indicating a bearish trend. The MACD of -164.63 indicates Positive momentum. The RSI at 21.11 is Positive, neither overbought nor oversold. The STOCH value of 5.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TATAELXSI.

Tata Elxsi Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CYIENT	74 Outperform	₹133.47B	21.14		2.21%	3.64%	-4.78%
MPHASIS	73 Outperform	₹546.94B	31.35		2.01%	8.11%	10.73%
TATATECH	69 Neutral	₹275.50B	40.21		1.23%	―	―
TATAELXSI	65 Neutral	₹341.22B	45.78		1.40%	1.83%	-5.37%
KPITTECH	64 Neutral	₹328.95B	40.38		0.71%	17.09%	21.20%
Sector *	61 Neutral	$36.05B	6.66	-10.10%	1.86%	8.68%	-8.81%
LTTS	61 Neutral	₹458.35B	36.09		1.30%	12.91%	-2.97%