Tata Group Multibagger Stock Recommended Final Dividend of 425% For FY 2021-22

Tata Elxsi is a global leader in design and technology services, with a focus on the automotive, broadcast, communications, healthcare, and transportation industries. This Tata Group company on 20th April 2022 announced its financial results for the quarter and year ending March 31, 2022 and the Board of Directors recommended a final dividend of 425 per cent at Rs. 42.50 per share for the fiscal year 2021-22.

The company has informed BSE that "we are pleased to inform you that the Board of Directors has recommended, subject to the approval of the members at the forthcoming Annual General Meeting, a final dividend of 425% at Rs. 42.50 per share for the year 2021-22, subject to tax."

"The Board of Directors have recommended a final dividend of 425% (Rs. 42.50 per equity share of par value of Rs. 10 each) for the financial year ending 31st March, 2022, subject to approval by the shareholders of the company at the Annual General Meeting," the company has said in an exchange filing.

The company said on Wednesday that its net profit for the fourth quarter ending March 2022 increased by 38.9% to Rs 160 crore, as opposed to Rs 115.16 crore during the year-ago period. During the quarter, income from operations increased by 31.5 per cent to Rs 681.73 crore, up from Rs 518.39 crore in March 2021. The company's profit after tax (PAT) increased by 49.3 per cent to Rs. 549.7 crore, crossing Rs. 500 crore for the first time in the company's business, while income from operations increased by 35.3 per cent to Rs. 2470.8 crore for the fiscal year 2021-22, which ended on March 31, 2022.

The company's Healthcare business grew 72.4 per cent YoY in FY21, and the company recorded Rs. 687.1 Cr in revenue from operations for the quarter ending March 31, 2022, up 7.3 per cent from the previous quarter (QoQ) and 31.5 per cent from the same quarter the previous year (YoY). PBT was Rs. 220.3 Cr during the period, up 10% quarter-on-quarter and 36.2 per cent year-on-year. Embedded Product Design (EPD) increased at a rate of 7.5 per cent QoQ, while Industrial Design and Visualisation (IDV) grew at a rate of 8.0 per cent QoQ.

Tata Elxsi shares have delivered a multibagger return of 159 per cent in a year, with the share price rising from Rs 3046 to Rs 7,904, with the stock up over 34.12 per cent in 2022 (YTD) so far. The stock has climbed 31.01 per cent in the last six months and 5.26 per cent in the last month. The stock has declined -7.58 per cent in the last five trading days, and in Thursday's closing session, it closed at Rs 7,904.30, up 1.23 per cent from the previous closing price of Rs 7,808. At the current market price Tata Elxsi Ltd. is performing stronger than the 50-day, 100-day, and 200-day moving averages, but weaker than the 5-day and 20-day moving averages.