750% Dividend By Tata’s 36-Year-Old Company; Record Date This Week; Should You Buy, Sell Or Hold?

Tata Elxsi Dividend: Tata's global design and technology services subsidiary shares started this week's trading session on a strong note on Monday, June 9. Ahead of the Tata Elxsi dividend record date, the company shares continue to enjoy significant investor interest.

Tata Elxsi in May announced a whopping 750% dividend for its eligible shareholders with its record date falling this week. Tata Elxsi share price ended 2.47% higher at Rs 6629.4 per share on BSE on Monday with a market capitalisation of Rs 41,290.92 crore. The company scrip touched an intraday high mark of Rs 6640 apiece on Monday.

Tata Elxsi Dividend

Tata's 36-year-old subsidiary had announced a 750% dividend of the company's face value in May, equivalent to Rs 75 per share with a face value of Rs 10 each. The company has stated that the announced dividend will be paid on or before June 30 and will be subject to tax deducted at source.

"The Board of Directors of the Company at its meeting held on April 17, 2025, had recommended a dividend of Rs. 75 per equity share of face value of Rs. 10 each (750%) for approval of members at the 36th AGM. The dividend, if approved, will be paid on or before June 30, 2025," read a BSE exchange filing on May 15.

Tata Elxsi Dividend Record Date

Tata Elxsi's Dividend record date has been fixed as June 11. A dividend record date is fixed by a company to identify the eligibility of stock market investors for corporate actions like dividends, stock splits, bonus issues, etc. Register of Members of Tata Elxsi will remain shut from Thursday, June 12 to Wednesday, June 25.

"Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has fixed Wednesday, June 11, 2025, as the Record Date for determining entitlement of Members to dividend for the financial year ended March 31, 2025," read a company exchange filing.

Tata Elxsi Share Price Recommendation

Tata Elxsi is prone to near-term headwinds amid uncertain growth prospects, highlighted brokerage firm Ventura. According to the firm, Tata Elxsi generates nearly 97% of its revenue from software development services (SDS). The service includes embedded product design (EPD), industrial design & visualisation (IDV), etc.The brokerage also signified that the company is 'well-positioned' to benefit from its structural growth.

Ventura indicated a 14.8% downside potential in Tata Elxsi share price in near term. The company maintained a 'Sell' rating for the stock with a target price of Rs 5518 for 24 months.

It also underlined the risk on Tata Group entity's performance in near term. According to Ventura report, Tata Elxsi's automotive segment (contributes 54.2%) and media and communications vertical (contributes 32.5%) are expected to hinder growth. "European OEMs face intensified competition from Chinese players, further complicated by China's recent rare earth export restrictions, which impact the supply of critical materials needed for EVs," noted Ventura.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor