The multibagger stock fell 5% to Rs 5,501.90 on Wednesday against the previous close of Rs 5796.15. Market cap of the firm slipped to Rs 34,274 crore
Tata Elxsi’s Q3 earnings have once again tested investor confidence. The company reported a sharp 29.6% sequential fall in net profit to ₹109 crore, even as revenues rose 4% to ₹953 crore. Operationally, EBIT improved 17.7% to ₹199 crore, with margins rising to 21% from 18.5%, offering some relief. However, markets remain cautious, with the stock slipping 2.7% after results. Experts point out that Tata Elxsi’s globally diversified business makes it vulnerable to ongoing tariff wars and uncertain client spending across the US and Europe. While margins have improved, analysts believe this could be temporary. With demand visibility still weak, Tata Elxsi may face further pressure in the coming quarters.
MOFSL said valuations of Tata Elxsi remain steep at 43 times 12-month forward earnings, which it finds difficult to justify given the lack of sustainable cross-vertical growth visibility.
Stocks including ICICI Lombard GIC, Tata Elxsi, NLC India, Karnataka Bank, Kotak Mahindra Bank, Just Dial, Interarch Building and more will be in the spotlight on Wednesday, January 14.
The multibagger stock slipped 1.37% to Rs 5771.40 today against the previous close of Rs 5851.55. Market cap of the firm stood at Rs 35,944 crore
The stock hit an upper circuit of 10% to Rs 5877.45 on Wednesday. Market cap of the firm rose to Rs 36,613 crore.
Nirmal Bang expects the Indian IT sector's third-quarter results to reflect muted revenue growth, with Tier-I companies likely to report flat constant currency growth
Choice Broking said near-term demand visibility stayed weak in Q3, with automotive and aerospace segments showing early signs of stabilisation.
The Tata Group emerged as one of the biggest wealth destroyers for investors in 2025, an unusual outcome for a conglomerate long associated with steady value creation. The damage was led by Tata Consultancy Services, which alone erased nearly ₹3 lakh crore in market capitalisation as the IT sector grappled with slowing growth, AI-led disruption and global trade uncertainty. Several other Tata stocks - including Trent, Tata Elxsi, Voltas and Tata Technologies - declined 20-40%, further denting investor portfolios. Even Tata Motors, a past outperformer, failed to deliver meaningful gains. While Tata Steel offered some relief with a strong rally on rising metal prices, it was not enough to offset broader losses. The year highlighted how sectoral headwinds and valuation pressures can turn even marquee groups into wealth destroyers.
The Indian stock market is wrapped in Christmas cheer as the Nifty trades at 25,979, firmly holding above the key 25,900 bull zone with 90 minutes left to potentially reclaim 26,000. Bank Nifty supports the rally, up 200 points to 59,112, while broad-based strength shines through - a robust advance-decline ratio of 1,922 advancing versus 800 declining stocks. Midcaps and small caps lead with Nifty Alpha 50 up 1%, Small cap 100 gaining 0.8%, and Midcap 100 rising 0.6%. Standouts include Shriram Finance hitting a record high on news of a potential $4.5 billion investment, Power Grid, Titan, Hindalco, and buzzing names like Tata Elxsi, JK Tyre, and pharma stocks. After a painful week, Nifty respects the 21-day EMA, signaling hope for a greener close to 2025.
PL Capital said its interaction with the Chief Financial Officer of Tata Elxsi reaffirmed that while the automotive segment was stabilising, the broader business continued to face pressure.
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