Tata Elxsi Limited (TATAELXSI) AI Stock Analysis

• Market Cap: ₹335.65B
• Dividend Yield: 1.39%
• Average Volume (3M): 13.04K
• Price to Earnings (P/E): 45.0
• Beta (1Y): 1.42
• Revenue Growth: 1.83%
• EPS Growth: -5.37%
• Country: IN
• Employees: 12,969
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 24.85
• Shares Outstanding: 62,292,564
• 10 Day Avg. Volume: 12,090
• 30 Day Avg. Volume: 13,040
• PEG Ratio: -43.37
• Price to Book (P/B): 11.04
• Price to Sales (P/S): 8.47
• P/FCF Ratio: 39.69
• 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: ₹5,156.67
• Price Target Upside: -7.47% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4

• Rating: 65 Neutral
• Price Target: ₹6,519.00 ▲(16.97% 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 (TATAELXSI) is a leading global design and technology services company headquartered in Bangalore, India. It operates primarily in the sectors of automotive, healthcare, media and entertainment, and transportation. The company offers a wide range of services including product engineering, design services, and digital solutions, leveraging advanced technologies such as artificial intelligence, machine learning, and the Internet of Things (IoT) to drive innovation and efficiency for its clients.

How the Company Makes Money

Tata Elxsi generates revenue through a diverse range of services tailored to the needs of various industries. The company primarily earns money through project-based contracts, which can include consulting, design, and development services in sectors such as automotive, where they focus on areas like embedded systems and connected vehicles. Another significant revenue stream comes from the healthcare sector, where they provide solutions for medical devices and healthcare IT. Additionally, Tata Elxsi's media and entertainment services, which include content creation and broadcast solutions, also contribute to its earnings. The company often engages in long-term partnerships and collaborations with global firms, which help to secure steady revenue. The growing demand for digital transformation across industries, coupled with Tata Elxsi's expertise in cutting-edge technologies, further enhances its revenue potential.

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	36.95B	37.29B	35.52B	31.45B	24.71B	18.26B
Gross Profit	13.35B	14.43B	11.50B	10.58B	10.46B	5.77B
EBITDA	10.93B	11.52B	11.69B	10.36B	8.11B	5.63B
Net Income	7.45B	7.85B	7.92B	7.55B	5.50B	3.68B
Balance Sheet
Total Assets	0.00	35.86B	31.87B	27.64B	21.69B	17.17B
Cash, Cash Equivalents and Short-Term Investments	15.90B	15.89B	13.80B	11.81B	9.56B	8.53B
Total Debt	0.00	1.92B	2.24B	1.82B	1.39B	732.10M
Total Liabilities	-28.60B	7.26B	6.81B	6.78B	5.68B	3.65B
Stockholders Equity	28.60B	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: Neutral
• Last Price: 5573.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TATAELXSI, the sentiment is Neutral. The current price of 5573.15 is above the 20-day moving average (MA) of 5516.92, below the 50-day MA of 5614.08, and below the 200-day MA of 5892.26, indicating a neutral trend. The MACD of -62.53 indicates Negative momentum. The RSI at 53.96 is Neutral, neither overbought nor oversold. The STOCH value of 73.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	₹131.02B	20.75	―	2.22%	3.64%	-4.78%
MPHASIS	71 Outperform	₹535.65B	30.71	―	2.04%	8.11%	10.73%
TATATECH	69 Neutral	₹289.21B	42.20	―	1.17%	―	―
KPITTECH	66 Neutral	₹320.86B	39.38	―	0.73%	17.09%	21.20%
TATAELXSI	65 Neutral	₹335.65B	45.03	―	1.39%	1.83%	-5.37%
LTTS	64 Neutral	₹455.82B	35.89	―	1.30%	12.91%	-2.97%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%