1:1 Bonus: Tata's 35-Year-Old Tech Company Makes Big Announcement; Stock May Rise By Rs 1,070 In 30 Days

Tata Group-backed 35-year-old tech giant, Tata Elxsi's share price rose after the company signed an innovative partnership with Dräger, a global leader in medical and safety technology. Noteworthily, Tata Elxsi's shares have gained by nearly 761% in the long term, especially after it issued bonus shares in the ratio of 1:1. There is room for further upside in Tata Elxsi in the short term.

Under the partnership, Dräger is expanding its research and development presence by establishing a new Offshore Development Center (ODC) at Tata Elxsi's facility in Pune. The ODC will focus on developing innovative critical care medical devices for both local and international markets.

This partnership combines Tata Elxsi's design and technology expertise along with Dräger's expertise in medical and safety technology, as per the regulatory filing.

Also, the development centers will unite talent from both organisations, dedicated to designing and developing innovative critical care medical devices for deployment in the Operation Theatre (OT) environment worldwide. This central hub will oversee all aspects of critical care product development, from conceptualisation to product design, prototyping, and testing.

Notably, the ODC provides a comprehensive critical care equipment testing facility, which is equipped with medical-grade gases, compressors, and oxygen cylinders to create a test environment, to meet the demanding requirements of the OT setup.

Furthermore, the collaboration between Tata Elxsi and Dräger taps into their collective talent to fast-track the development of cost-effective, high-quality medical devices, contributing to a robust healthcare
ecosystem that is accessible to everyone. The partnership showcases Indian R&D capabilities on the global stage. This marks Dräger's second R&D centers in India, showcasing its commitment to Indian innovation and manufacturing capabilities.

Tata Elxsi Share Price:

On BSE, Tata Elxsi's share ended at Rs 7,779.60 apiece, up by 1.43% with a market cap of Rs 48,448.58 crore on the last trading day of FY24.

The stock's 52-week high and low is at Rs 9,191.10 and Rs 5,900 apiece.

In a year, Tata Elxsi's share have surged by 30% on BSE. But in the long term, the stock has skyrocketed by 761% since mid-2017.

Tata Elxsi Bonus Issue And Dividend:

Tata Elxs rewarded its investors with a bonus issue in the ratio of 1:1 in September 2017. On the day it turned ex-bonus which was on September 18, 2017, Tata Elxsi's share stood at Rs 903.60 apiece.

Apart from this, in the last 12 months, Tata Elxsi has delivered hefty dividends up to Rs 60.60 per share. And it currently has a dividend yield of 0.8%. As per Trendlyne data, Tata Elxsi has paid up to 24 dividends since June 21, 2001.

Tata Elxsi is among the most expensive stocks in Tata Group's umbrella in terms of per share. The company has never carried a stock split.

Tata Elxsi's Target Price:

In the short term, Tata Elxsi has the potential to rise by over Rs 1,070 or 14%. To be precise, this potential upside is expected within 30 days timeframe.

Axis Direct has given the latest investment ideas on Tata Elxsi. The brokerage adds Tata Elxsi as its e-margin pick with a timeframe of 30 days. The entry range in Tata Elxsi is around Rs 7,720.00 - 7,828.00.

While Axis Direct recommends buying the stock for a target price of Rs 8,850 with a stop loss of Rs 7,627.

Tata Elxsi is a global design and technology services company headquartered in Bangalore. It addresses the healthcare, automotive, broadcast, and communications consumer electronics industries. This is supported by a network of design studios, development centers, and offices worldwide.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.