Multibagger Tata Group stock turned ex-dividend today; is it a good buy?
Tata Elxsi share price today: Tata Elxsi stock is a multibagger, rising 778% during the last three years. The large cap stock hit a 52-week low of Rs 5708.10 on December 26, 2022 and a 52 week high of Rs 10,760 on August 17, 2022.
- Jun 22, 2023,
- Updated Jun 22, 2023 12:29 PM IST
Shares of multibagger Tata Elxsi Ltd are in focus as the IT stock turned ex-dividend today. Tata Elxsi announced a dividend of Rs 60.6 per equity share with a face value of Rs 10 subject to the approval of the shareholders at the annual general meeting (AGM). Tata Elxsi’s dividend payment will be made on August 3.
The Tata Group stock is a multibagger, rising 778% during the last three years. Tata Elxsi stock has gained 3% in the last one year. The large cap stock hit a 52-week low of Rs 5708.10 on December 26, 2022 and a 52 week high of Rs 10,760 on August 17, 2022. The stock is trading 28.38% lower to its 52-week high.
In the current trading session, Tata Elxsi stock was trading 1.18% lower at Rs 7701.35 against the previous close of Rs 7793.45 on BSE. The Tata Group stock has been trading in the red today. It opened at Rs 7782.95 against the previous close of Rs 7793.45 on BSE. Total 6806 shares of the firm changed hands amounting to a turnover of Rs 5.26 crore on BSE. The market cap of the firm fell to Rs 47,961 crore today.
In terms of technicals, the relative strength index (RSI) of Tata Elxsi stands at 65.5, signaling it's trading neither in the overbought nor in the oversold zone. Tata Elxsi stock has a one-year beta of 1, indicating average volatility during the period. Tata Elxsi shares are trading higher than the 20 day and 50 day 100 day and 200 day moving averages but lower than the 5 day, and 10 day moving averages.
Abhijeet from Tips2trades said, "After a strong rally, Tata Elxsi now looks bearish on the daily charts with strong resistance at Rs 7947. A daily close below support of Rs 7610 could lead to target of Rs 7000 in the near term."
Brokerage JPMorgan has a target of Rs 4,600 for the software and services sector stock. JPMorgan is underweight on this stock on the back of what it sees as its excessive valuation of 57 times one-year forward P/E when growth is slowing and margins are not likely to expand.
"A reverse DCF on the share price implies a 25 per cent revenue CAGR over the next decade, which we believe is overly optimistic. We note that ER&D spend tends to be more discretionary in nature than IT services and hence is at higher risk from a potential macro slowdown," it said.
In the fourth quarter of the previous fiscal, the design-led technology service provider logged a 26% rise in net profit to Rs 201.5 crore crore against Rs 160.01 crore profit in the year-ago period.
Revenue from operations rose 23% to Rs 838 crore in Q4 against Rs 681.7 on a year-on-year basis. Sequentially, it rose 2.5% from Rs 817.7 crore. The IT company's total income climbed 23.4% on year to Rs 863.6 crore in Q4FY23 from Rs 699.8 crore in Q4FY22.
The company's Q4FY23 EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) margin came at 29.8% against 32.5% on a year-on-year (YoY) basis.
Tata Elxsi is a subsidiary of Tata Sons, holding company of the Tata Group. It provides design and technology services across industries including automotive, broadcast, communications, healthcare, and transportation. The company aims to help customers reimagine their products and services through design thinking and the application of digital technologies such as IoT (Internet of Things), cloud, mobility, virtual reality and artificial intelligence.
Also read: Tata Steel, Tata Elxsi: 2 Tata group shares turn ex-dividend; stocks mixed
Shares of multibagger Tata Elxsi Ltd are in focus as the IT stock turned ex-dividend today. Tata Elxsi announced a dividend of Rs 60.6 per equity share with a face value of Rs 10 subject to the approval of the shareholders at the annual general meeting (AGM). Tata Elxsi’s dividend payment will be made on August 3.
The Tata Group stock is a multibagger, rising 778% during the last three years. Tata Elxsi stock has gained 3% in the last one year. The large cap stock hit a 52-week low of Rs 5708.10 on December 26, 2022 and a 52 week high of Rs 10,760 on August 17, 2022. The stock is trading 28.38% lower to its 52-week high.
In the current trading session, Tata Elxsi stock was trading 1.18% lower at Rs 7701.35 against the previous close of Rs 7793.45 on BSE. The Tata Group stock has been trading in the red today. It opened at Rs 7782.95 against the previous close of Rs 7793.45 on BSE. Total 6806 shares of the firm changed hands amounting to a turnover of Rs 5.26 crore on BSE. The market cap of the firm fell to Rs 47,961 crore today.
In terms of technicals, the relative strength index (RSI) of Tata Elxsi stands at 65.5, signaling it's trading neither in the overbought nor in the oversold zone. Tata Elxsi stock has a one-year beta of 1, indicating average volatility during the period. Tata Elxsi shares are trading higher than the 20 day and 50 day 100 day and 200 day moving averages but lower than the 5 day, and 10 day moving averages.
Abhijeet from Tips2trades said, "After a strong rally, Tata Elxsi now looks bearish on the daily charts with strong resistance at Rs 7947. A daily close below support of Rs 7610 could lead to target of Rs 7000 in the near term."
Brokerage JPMorgan has a target of Rs 4,600 for the software and services sector stock. JPMorgan is underweight on this stock on the back of what it sees as its excessive valuation of 57 times one-year forward P/E when growth is slowing and margins are not likely to expand.
"A reverse DCF on the share price implies a 25 per cent revenue CAGR over the next decade, which we believe is overly optimistic. We note that ER&D spend tends to be more discretionary in nature than IT services and hence is at higher risk from a potential macro slowdown," it said.
In the fourth quarter of the previous fiscal, the design-led technology service provider logged a 26% rise in net profit to Rs 201.5 crore crore against Rs 160.01 crore profit in the year-ago period.
Revenue from operations rose 23% to Rs 838 crore in Q4 against Rs 681.7 on a year-on-year basis. Sequentially, it rose 2.5% from Rs 817.7 crore. The IT company's total income climbed 23.4% on year to Rs 863.6 crore in Q4FY23 from Rs 699.8 crore in Q4FY22.
The company's Q4FY23 EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) margin came at 29.8% against 32.5% on a year-on-year (YoY) basis.
Tata Elxsi is a subsidiary of Tata Sons, holding company of the Tata Group. It provides design and technology services across industries including automotive, broadcast, communications, healthcare, and transportation. The company aims to help customers reimagine their products and services through design thinking and the application of digital technologies such as IoT (Internet of Things), cloud, mobility, virtual reality and artificial intelligence.
Also read: Tata Steel, Tata Elxsi: 2 Tata group shares turn ex-dividend; stocks mixed