Tata Elxsi Share Price Target 2024, 2025, 2026, 2027, 2030 Prediction: Buy or Sell?
Tata Elxsi Ltd. is a leading provider of design and technology services for product engineering and solutions across industries including broadcast, communications, automotive, consumer electronics, healthcare, and transportation. In this blog post, I will analyze the Tata Elxsi Share Price Target 2024, 2025, 2026, 2027, 2030 based on fundamental and technical analysis.
Tata Elxsi is part of the Tata Group, one of India’s largest and most respected business conglomerates. The company has also been expanding its global presence and client base across various domains and geographies.
In this blog post, we will analyze Tata Elxsi stock from different perspectives, such as its competitors, growth opportunities, strengths, weaknesses, SWOT analysis, financials, risks, and key things to watch out for.
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Page Contents
Tata Elxsi Share Price Target 2024, 2025, 2026, 2027, 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2024 | ₹10,256.47 | ₹11,364.19 |
| 2025 | ₹12,820.59 | ₹14,205.24 |
| 2026 | ₹16,025.73 | ₹17,756.55 |
| 2027 | ₹20,032.17 | ₹22,195.68 |
| 2028 | ₹25,040.21 | ₹27,744.60 |
| 2029 | ₹31,300.26 | ₹34,680.76 |
| 2030 | ₹39,125.33 | ₹43,350.94 |
| 2031 | ₹48,906.66 | ₹54,188.68 |
| 2032 | ₹61,133.33 | ₹67,735.85 |
| 2033 | ₹76,416.66 | ₹84,669.81 |
Consider reading: Tata Power Share Price Target
Tata Elxsi Share Price Live Today and History
Tata Elxsi Share: Buy or Sell?
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Competitors of Tata Elxsi Stock
Tata Elxsi, a prominent player in the engineering research and development (ER&D) and IT services market, faces competition from both large IT service providers and specialized ER&D companies. Here’s a comparative overview of Tata Elxsi and its major competitors:
- Tata Consultancy Services (TCS):
- Market Capitalization: Rs 14,63,488 crore
- PE Ratio: 40.54
- Notable for being India’s largest IT service provider and a key player in the global ER&D market, TCS offers diverse services across multiple industries including automotive, aerospace, industrial, medical, and telecom.
- L&T Technology Services:
- Market Capitalization: Rs 1,04,084 crore
- PE Ratio: 64.95
- A subsidiary of Larsen & Toubro, L&T Technology Services specializes in ER&D across transportation, industrial products, medical devices, telecom and hi-tech, and process industries.
- KPIT Technologies:
- Market Capitalization: Rs 22,500 crore
- PE Ratio: 76.36
- KPIT Technologies focuses on the ER&D market, particularly in the automotive and mobility sector, offering solutions in autonomous driving, electrification, connected vehicles, and software engineering.
- Tata Elxsi:
- Market Capitalization: Rs 51,728 crore
- PE Ratio: 57.32
- As a pure-play ER&D firm, Tata Elxsi caters to automotive, media, broadcast and communications, and healthcare sectors.
Key Financial Metrics Comparison:
| Company | Market Cap (Rs Cr) | PE Ratio | Revenue Growth (YoY) | Net Profit Growth (YoY) | ROE (%) | Dividend Yield (%) |
|---|---|---|---|---|---|---|
| TCS | 14,63,488 | 40.5 | 18.5% | 24.6% | 37.4 | 1.28 |
| L&T Technology | 1,04,084 | 64.9 | 17.8% | 64.4% | 25.9 | 0.87 |
| KPIT Technologies | 22,500 | 76.3 | 37.6% | 59.2% | 19.8 | 0.18 |
| Tata Elxsi | 51,728 | 57.3 | 35.3% | 49.3% | 31.1 | 0.72 |
Consider reading: Top 10 Best IT Stocks List in India
Tata Elxsi Share Price Target 2024
| Minimum Share Price Target | Maximum Share Price Target |
|---|---|
| ₹10,256.47 | ₹11,364.19 |
Tata Elxsi share price target in 2024 is expected to range from a minimum of ₹10,256.47 to a maximum of ₹11,364.19.
Growth Opportunity for Tata Elxsi Stock
Tata Elxsi is poised for substantial growth in the thriving ER&D (Engineering Research and Development) sector, expected to expand at a CAGR of 11.7% from 2020 to 2025, reaching an estimated $642 billion. This growth trajectory is propelled by increasing demands for innovation, digital transformation, and more efficient time-to-market strategies. A notable trend in this market is the shift from in-house ER&D to outsourced models, with OEMs (Original Equipment Manufacturers) seeking to leverage the expertise of ER&D service providers.
Strategic Positioning of Tata Elxsi:
- Tata Elxsi’s strong domain expertise, customer-centric approach, and rich talent pool place it in a strategic position to harness these market opportunities.
- The company’s investment in proprietary platforms and solutions like AUTONOMAI, FalconEye, and TEPlay offers a competitive advantage, setting it apart in the market.
Key Growth Drivers for Tata Elxsi:
- Automotive Sector: This sector is experiencing transformative trends such as autonomous driving, electrification, connected vehicles, and shared mobility, all of which demand extensive ER&D services. Tata Elxsi’s robust presence in this sector, with solutions for ADAS, V2X communication, infotainment, and electric powertrains, positions it well for growth. Collaborations with industry leaders like Jaguar Land Rover, Volvo, Honda, and Bosch underscore its industry prominence.
- Media, Broadcast, and Communications: Rapid growth in digital platforms, content proliferation, and evolving consumer preferences are driving expansion in this sector. Tata Elxsi addresses these challenges with comprehensive solutions spanning content creation to distribution. Its cloud-based OTT platform, TEPlay, supports media companies in content monetization. Partnerships with Disney, Netflix, Sony, and Starzplay highlight its capabilities in this domain.
- Healthcare: The healthcare industry’s digital shift, embracing AI, IoT, cloud computing, and big data, offers significant opportunities. Tata Elxsi’s expertise encompasses medical device design, digital health platforms, data analytics, and regulatory compliance. The development of MedBuddy, a remote patient monitoring platform, and collaborations with GE Healthcare, Philips, and Siemens, further establish its foothold in this sector.
Tata Elxsi Share Price Target 2025
| Minimum Share Price Target | Maximum Share Price Target |
|---|---|
| ₹12,820.59 | ₹14,205.24 |
Tata Elxsi share price target in 2025 is projected to fall within the range of ₹12,820.59 (minimum) to ₹14,205.24 (maximum).
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Strengths of Tata Elxsi Stock
Tata Elxsi, an established player in the ER&D (Engineering Research and Development) sector, possesses a range of strengths that grant it a significant competitive edge. These strengths not only distinguish the company in the market but also contribute to its robust growth and success.
1. Domain Expertise:
- Sector-Specific Knowledge: Tata Elxsi’s expertise spans key sectors like automotive, media, broadcast and communications, and healthcare. This specialized knowledge enables the company to navigate industry trends and challenges effectively, offering tailored solutions to clients.
- Engineering and Design Proficiency: The company’s strong engineering and design capabilities are central to delivering innovative and high-quality solutions.
2. Innovation Capability:
- Value-Added Platforms and Solutions: The development of proprietary platforms such as AUTONOMAI, FalconEye, and TEPlay demonstrates Tata Elxsi’s commitment to innovation, providing clients with added value and distinct solutions.
- Focus on Emerging Technologies: A dedicated R&D team works on cutting-edge technologies like AI, IoT, cloud computing, and big data, ensuring the company stays at the forefront of technological advancements.
3. Customer-Centric Approach:
- Building Client Relationships: Tata Elxsi’s consultative and collaborative model is key to fostering long-term client relationships. Understanding and addressing client-specific needs have led to high customer satisfaction and retention rates.
- Tailor-Made Solutions: The company’s ability to provide custom solutions attests to its commitment to client-centricity, further strengthening its market position.
4. Talent Pool:
- Skilled Workforce: With over 11,000 employees from diverse backgrounds, Tata Elxsi boasts a rich talent pool that underpins its operational excellence.
- Talent Management and Development: Strong programs for talent attraction, retention, and development are in place, ensuring a continuous influx of skilled personnel.
- Culture of Innovation and Excellence: The company culture emphasizes innovation, learning, and excellence, fostering an environment where employees are motivated to give their best.
Tata Elxsi Share Price Target 2026
| Minimum Share Price Target | Maximum Share Price Target |
|---|---|
| ₹16,025.73 | ₹17,756.55 |
Tata Elxsi share price target in 2026 is projected to fall within the range of ₹16,025.73 to a maximum of ₹17,756.55.
Weaknesses of Tata Elxsi Stock
While Tata Elxsi exhibits significant strengths in the ER&D sector, there are certain weaknesses that could potentially impact its growth trajectory and stock performance. It’s important to understand these limitations to get a comprehensive view of the company’s market position.
1. High Valuation:
- Elevated PE Ratio: Tata Elxsi’s stock trades at a PE ratio of 57.3, surpassing the industry average of 59.7. This high valuation suggests that the market’s expectations are steep, making the stock susceptible to volatility in case of any negative developments or earnings not meeting forecasts.
- Limited Upside Potential: Given its already high valuation, there’s a constrained scope for further price appreciation, which might deter potential investors looking for growth opportunities.
2. Over-Reliance on the Automotive Sector:
- Sector Concentration Risk: With over half of its revenue sourced from the automotive sector, Tata Elxsi is exposed to the cyclical nature and uncertainties of this industry, including demand fluctuations, regulatory shifts, and supply chain challenges.
- Impact on Revenue and Profitability: Adverse developments in the automotive industry could lead to reduced order inflows and pricing pressures, potentially impacting Tata Elxsi’s revenue and margins.
3. Low Dividend Payout:
- Conservative Dividend Policy: The company has a relatively low dividend payout ratio of 41.1%, lower than the industry average. This approach indicates that the company prioritizes reinvestment of profits over dividend distribution.
- Less Attractive to Income Investors: This strategy, while potentially beneficial for long-term growth, might reduce the stock’s appeal to investors who prefer stocks with higher and regular dividend payouts.
SWOT Analysis of Tata Elxsi Stock
The SWOT analysis of Tata Elxsi stock is as follows:
Strengths:
- Domain Expertise: Tata Elxsi has established strong expertise in key sectors like automotive, media, broadcast and communications, and healthcare.
- Innovation Capability: The company excels in innovation, demonstrated through its development of proprietary platforms and solutions.
- Customer-Centric Approach: A focus on understanding and meeting client needs has led to strong, long-lasting client relationships.
- Talent Pool: Tata Elxsi boasts a skilled workforce, crucial for maintaining its competitive edge.
Weaknesses:
- High Valuation: The stock’s PE ratio indicates a high market valuation, which can lead to volatility and limits potential for further stock price appreciation.
- Dependence on Automotive Sector: Over-reliance on the automotive sector exposes the company to industry-specific risks and cyclicality.
- Low Dividend Payout: The company’s lower dividend payout may not appeal to investors seeking regular income from their investments.
Opportunities:
- Growing ER&D Market: The expanding ER&D sector presents significant growth opportunities for Tata Elxsi.
- Emerging Technologies: As technologies evolve, there is potential for Tata Elxsi to expand its offerings and client base.
- Cross-Selling and Up-Selling: The company can leverage its existing client relationships to offer more services.
- Strategic Partnerships and Acquisitions: Collaborations and acquisitions can broaden Tata Elxsi’s capabilities and market reach.
Threats:
- Competition from Peers: Strong competitors in the IT and ER&D sectors pose a challenge.
- Regulatory and Legal Risks: Changes in regulations, particularly in different geographies, can impact operations.
- Geopolitical and Macroeconomic Risks: Global economic conditions and geopolitical issues can affect business prospects.
Tata Elxsi Share Price Target 2030
| Minimum Share Price Target | Maximum Share Price Target |
|---|---|
| ₹39,125.33 | ₹43,350.94 |
Tata Elxsi share price target in 2030 is projected to have a target range between ₹39,125.33 (minimum) and ₹43,350.94 (maximum).
Tata Elxsi Company Financials
Tata Elxsi has demonstrated a robust financial performance over the past five years, marked by steady growth in revenue and net profit, as well as a strong position in terms of returns and liquidity. The following table provides a detailed summary of the key financial metrics:
| Year | Revenue (Rs Cr) | Revenue Growth (%) | Net Profit (Rs Cr) | Net Profit Growth (%) | EPS (Rs) | EPS Growth (%) | ROE (%) | ROCE (%) |
|---|---|---|---|---|---|---|---|---|
| 2019 | 1,597 | 18.1 | 309 | 32.8 | 92.4 | 32.8 | 31.6 | 37.8 |
| 2020 | 1,668 | 4.5 | 311 | 0.6 | 93.1 | 0.8 | 25.7 | 30.9 |
| 2021 | 1,881 | 12.8 | 374 | 20.3 | 111.9 | 20.2 | 26.9 | 32.4 |
| 2022 | 2,545 | 35.3 | 559 | 49.3 | 167.2 | 49.4 | 31.1 | 37.1 |
| 2023 | 3,445 | 35.3 | 834 | 49.3 | 249.6 | 49.3 | 31.1 | 37.1 |
Key Highlights:
- Consistent Revenue Growth: The company has shown a consistent increase in revenue over the years, with a significant jump in 2022 and 2023, indicating robust business expansion.
- Rising Net Profit: Net profit has also seen a substantial rise, especially in the last two years, reflecting increased profitability.
- Earnings Per Share (EPS) Growth: EPS has seen a consistent upward trend, nearly tripling from 2019 to 2023. This suggests increased earnings available to shareholders.
- High Return on Equity (ROE) and Return on Capital Employed (ROCE): Both ROE and ROCE have remained high, indicating efficient use of equity and capital in generating profits.
Dividend Declaration: For the year 2023, the company declared a dividend of Rs 18 per share, translating to a dividend yield of 0.72%. This aligns with the company’s policy of rewarding shareholders while maintaining a balance with reinvesting earnings for growth.
Tata Elxsi’s financials highlight its strong market position and efficient operational performance, making it a noteworthy company in its sector.
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Future Risks and Challenges for Tata Elxsi
Tata Elxsi, while demonstrating robust performance, confronts several risks and challenges that could potentially impact its future growth and market position. Understanding these risks is crucial for comprehensive strategic planning and risk mitigation. Some key risks include:
1. Competition from Peers:
- Market Position Challenges: Tata Elxsi competes with both large IT service providers and specialized ER&D players. This competition could pressure market share, client base, and talent retention.
- Need for Continuous Innovation: To maintain its competitive edge, the company must continually innovate, offering distinct and superior solutions compared to its competitors.
2. Regulatory and Legal Risks:
- Compliance with Multiple Jurisdictions: Operating across various geographies, Tata Elxsi must adhere to diverse regulatory frameworks, including data privacy, intellectual property rights, taxation, labor, and environmental regulations.
- Potential for Litigation: The company is exposed to the risk of legal disputes and penalties, which could arise from dealings with clients, suppliers, employees, or regulatory authorities. Such scenarios could impact Tata Elxsi’s reputation and financial health.
3. Geopolitical and Macroeconomic Risks:
- Global Market Sensitivities: Political instability, trade conflicts, currency fluctuations, and economic shifts such as inflation and interest rate changes can affect Tata Elxsi’s operations and profitability.
- Supply Chain and Operational Disruptions: Geopolitical tensions and macroeconomic factors can disrupt the company’s supply chain and business activities.
- Pandemic-Related Risks: As seen with COVID-19, pandemics pose significant operational challenges, impacting the workforce, client interactions, and overall business continuity.
Recognizing and preparing for these risks is essential for Tata Elxsi to sustain its growth trajectory and successfully navigate future challenges in the dynamic global market.
Key Things to Watch Out for Tata Elxsi
For investors eyeing Tata Elxsi in the ER&D market, it is essential to scrutinize various factors that could influence the company’s performance and stock valuation. Being informed about these aspects can guide better investment decisions. Here are some critical elements to monitor:
1. Revenue and Profitability Growth:
- Sustained Growth Metrics: Observe Tata Elxsi’s ability to maintain or accelerate its revenue and profitability growth. Consistent growth is a strong indicator of the company’s operational efficiency and market demand for its services.
- Market Share and Client Expansion: Look for signs of the company expanding its client base and increasing market share, which are vital for long-term growth.
- Performance Against Market Expectations: Assess how the company fares against market expectations and its own guidance, as this influences investor confidence and stock credibility.
2. Diversification and Innovation:
- Revenue Stream Diversification: Evaluate the company’s efforts to diversify its revenue sources, including geographic expansion, venturing into new sectors, and adding new services. Reducing reliance on the automotive sector is crucial for risk mitigation.
- Investment in Emerging Technologies: Innovation is key in the ER&D sector. Tata Elxsi’s investment in new technologies and the development of proprietary platforms and products are critical for maintaining its competitive edge.
- Strategic Acquisitions and Partnerships: Monitor the company’s strategy regarding acquisitions and partnerships, which can enhance its service offerings and open new market opportunities.
3. Valuation and Dividend:
- Stock Valuation Justification: Given its high valuation, it’s important to discern whether Tata Elxsi’s growth and profitability justify its current market price.
- Dividend Payouts: Analyze the company’s dividend policy. An increase in dividend payout, reflecting higher and stable cash flows, can be attractive for shareholders seeking regular income from their investments.
By keeping a close eye on these factors, investors can gain a deeper understanding of Tata Elxsi’s potential risks and rewards, aiding in making informed investment decisions in this dynamic market.
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Final Thoughts on Tata Elxsi Share Price Target 2024, 2025, 2026, 2027, and 2030
In conclusion, keeping tabs on the Tata Elxsi share price target is an essential endeavor for both existing shareholders and prospective investors.
The company’s robust position in the technology and design space, coupled with its consistent track record, makes it an enticing prospect for those seeking long-term gains.
However, it’s crucial to remember that stock market investments carry inherent risks, so it’s always advisable to do thorough research and possibly seek professional advice before making any investment decisions.
Stay tuned for more updates and insights on Tata Elxsi share price target, empowering you with the knowledge you need for smart investing.
FAQs on Tata Elxsi Share Price Target 2024, 2025, 2026, 2027, and 2030
What is the future of Tata Elxsi share price?
The future of Tata Elxsi share price looks promising. Based on predictions, it’s expected to witness an upward trend in the years 2026-2030, with a projected maximum of ₹15,260.96 and a minimum of ₹9,741.37. Investors can consider this information while making their investment decisions.
What is the Tata Elxsi Share Price Target in 2024?
Tata Elxsi share price target in 2024 is anticipated to vary between ₹10,256.47 (minimum) and ₹11,364.19 (maximum).
What is the Tata Elxsi Share Price Target in 2025?
Tata Elxsi share price target in 2025 is estimated to be in the range of ₹12,820.59 (minimum) to ₹14,205.24 (maximum).
What is the Tata Elxsi Share Price Target in 2026?
Tata Elxsi share price target in 2026 is anticipated to range from a minimum of ₹16,025.73 to a maximum of ₹17,756.55.
What is the Tata Elxsi Share Price Target in 2030?
Tata Elxsi share price target in 2030 is projected to have a target range between ₹39,125.33 (minimum) and ₹43,350.94 (maximum).
Should I buy Tata Elxsi for the long term?
Yes, Tata Elxsi stock is a strong option for long-term investment. It is recommended to include Tata Elxsi in your portfolio due to its potential growth prospects.
