Tata Elxsi Share Price: Tata Group-backed midcap IT stock touched back-to-back new lows. On Tuesday, February 25, Tata Elxsi's share price hit a new 1-year low of Rs 5675 apiece. Year-to-date, the stock is down by 16%, while in six months, the decline is about 26%. That being said, is there a buy-on-dips opportunity in Tata Elxsi's share price? Or should you sell, or wait and watch for fresh upside?
Tata Elxsi Share Price:
After the market hours, Tata Elxsi's share price closed at Rs 5694.75 apiece, down by Rs 159.80 or 2.73% on BSE, with a market cap of Rs 35,468.95 crore. The closing price was near its 52-week low of Rs 5675.00 apiece that it touched during the trading hours.
The stock's 52-week high and low is at Rs 9,082.90 apiece and Rs 5,675.00 apiece respectively. Its price-to-equity ratio is at 43.82x, while its return on equity is at 32.55%.
However, so far 2025 has been bearish for Tata Elxsi shares. YTD, the stock dipped by Rs 32.55 or 15.6%. In the past six months, the stock nosedived by Rs 2,021.20 or 26.20% on BSE.
Among its corporate actions, Tata Elxsi has a history of bonus issues and hefty dividend payout.
Bonus Issue: The company has delivered only one bonus issue and that was in September 2017. It delivered a 1:1 bonus ratio, meaning 1 free share on existing 1.
Dividends: As per Trendlyne data, the company has declared 23 dividends since July 16, 2003. In the past 12 months, Tata Elxsi Ltd. has declared an equity dividend amounting to Rs 70.00 per share.
Should You Buy Tata Elxsi Share Price?
In its latest research report, brokerage Geojit highlighted that TELX remains confident about the future, citing growth by network transformation in AL led services and anticipates recovery in the healthcare sector starting Q3, due to a healthy pipeline deal and growth in key transportation verticals. Healthcare & Life Sciences business grew by 1.1% and Media and communication business reported 0.4% QoQ growth.
Further, Geojit said, "We believe softness in the spending by automotive clients is likely to pose a near term challenge. As a result, reprioritization in the EV R&D budget is expected. To offset the same, TELX aspires to navigate by ramping up previously won large deals. In addition, in the Healthcare Media & Communication verticals, the company expects stability in the later half of the year. The growth in the transportation vertical will persist in the coming years, given the need for digitization in the automobile industry."
Geojit's note added, "TELX is well positioned to capture the opportunities due to its deep domain knowledge and work on its clients' long-term strategic projects. Hence, we maintain our valuation at 38x FY27E EPS and recommend a Hold rating with a target price of Rs.7,010."
The midcap IT company reported a lower net profit of Rs 190 crore in Q3FY25, compared to Rs 206.43 crore in Q3FY24 and Rs 229.43 crore in Q2FY25. Meanwhile, top-line performance was mixed with revenue from operations coming at Rs 939.17 crore in Q3FY25, which was higher than revenue of Rs 914.23 crore in Q3FY24, but lower from Rs 955.08 crore in Q2FY25.
Tata Elxsi is amongst the world's leading providers of design and technology services across industries including Automotive, Broadcast, Communications, Healthcare and Transportation.
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