Tata Group stock down 37% in 9 months; brokerage sees 22% upside, recommends 'Buy’
Geojit remains positive about the Tata Group firm, noting that, despite macroeconomic and competitive pressures, the company's domain expertise, design-led approach, and offshore execution position it for sustained recovery.
- Mar 26, 2026,
- Updated Mar 26, 2026 4:17 PM IST
Tata Elxsi Ltd shares are down nearly 37% in the last nine months on BSE since the stock touched its 52-week high of Rs 6,733.50 on June 10, 2025. However, brokerage firm Geojit has issued a ‘Buy’ recommendation on the stock.
According to Geojit, the company is entering a recovery phase, fuelled by strong transportation growth from SDV-led deal ramp-ups, new OEM wins, and expansion into off-road markets.
“While sequential recovery was visible with 3.9% growth, led by a 7.7% rebound in transportation on SDV-driven OEM ramp-ups and normalisation of key client engagements,” the brokerage said.
Geojit said high growth areas like electrification (EVs and hybrids), ADAS, and connected car platforms continue to see strong customer spending.
The brokerage values the company at 33 times FY28E EPS, citing a gradual demand recovery.
Geojit has set a target price of Rs 5,135 for Tata Elxsi, projecting a 22% upside from its current levels of Rs 4,213 over a 12-month time frame.
Tata Elxsi posted a 2% YoY revenue decline in 9MFY26, and its EBITDA margin took a hit, declining 534 basis points year-on-year to 22% in the same nine-month period, Geojit noted.
“Margins may face near-term pressure from wage hikes & Chinese competition, but rising utilization & operating leverage provide expansion potential without large-scale hiring,” it said.
Geojit anticipates that anchor client recovery is expected over the next 1-2 quarters. The brokerage also expects the lagging healthcare and media & communications sectors to bounce back gradually from Q4FY26.
Geojit remains positive about the Tata Group firm, noting that, despite macroeconomic and competitive pressures, the company's domain expertise, design-led approach, and offshore execution position it for sustained recovery.
Tata Elxsi Ltd shares are down nearly 37% in the last nine months on BSE since the stock touched its 52-week high of Rs 6,733.50 on June 10, 2025. However, brokerage firm Geojit has issued a ‘Buy’ recommendation on the stock.
According to Geojit, the company is entering a recovery phase, fuelled by strong transportation growth from SDV-led deal ramp-ups, new OEM wins, and expansion into off-road markets.
“While sequential recovery was visible with 3.9% growth, led by a 7.7% rebound in transportation on SDV-driven OEM ramp-ups and normalisation of key client engagements,” the brokerage said.
Geojit said high growth areas like electrification (EVs and hybrids), ADAS, and connected car platforms continue to see strong customer spending.
The brokerage values the company at 33 times FY28E EPS, citing a gradual demand recovery.
Geojit has set a target price of Rs 5,135 for Tata Elxsi, projecting a 22% upside from its current levels of Rs 4,213 over a 12-month time frame.
Tata Elxsi posted a 2% YoY revenue decline in 9MFY26, and its EBITDA margin took a hit, declining 534 basis points year-on-year to 22% in the same nine-month period, Geojit noted.
“Margins may face near-term pressure from wage hikes & Chinese competition, but rising utilization & operating leverage provide expansion potential without large-scale hiring,” it said.
Geojit anticipates that anchor client recovery is expected over the next 1-2 quarters. The brokerage also expects the lagging healthcare and media & communications sectors to bounce back gradually from Q4FY26.
Geojit remains positive about the Tata Group firm, noting that, despite macroeconomic and competitive pressures, the company's domain expertise, design-led approach, and offshore execution position it for sustained recovery.