Tata Elxsi share has delivered 206% returns in last seven months. Share price of the Tata Group firm, which stood at Rs 501 on March 25, 2020, rose to Rs 1,533 today, tripling investor wealth during the period. An investment of Rs 1 lakh in Tata Elxsi stock on March 25 would have turned to Rs 3.05 lakh on October 15.
On March 25, the stock hit 52-week low two sessions after Sensex and Nifty logged their biggest crash ever amid rising cases of coronavirus pandemic and the subsequent lockdown which stalled economic activity across the country.
The share touched all-time high today after the firm reported a 58% rise in Q2 net profit. The Tata Group firm reported profit of Rs 78.9 crore in Q2 compared to Rs 49.8 crore in the corresponding quarter of previous fiscal. Revenue rose to Rs 430.2 crore from Rs 385.8 crore YoY.
Profit also rose 14% on a sequential basis. In Q1 of current fiscal, the firm posted a profit of Rs 68.87 crore.
Earnings per share rose to Rs 12.67 in Q2 against Rs 8 in the same period of last fiscal. In Q1 of current fiscal, EPS stood at Rs 11.06.
In the first quarter of current fiscal too, the firm reported a strong set of earnings. The firm logged a 41% rise in its net profit in Q1. The firm posted net profit of Rs 68.87crore in Q1 against Rs 48.79 crore net profit in the corresponding period of the previous year.
The firm has a strong return on equity (ROE) of 25% against average industry ROE of 11% Tata Elxsi clocked 16% net income growth over the past five years.
Tata Elxsi is amongst the world's leading providers of design and technology services for product engineering and solutions across industries including Broadcast, Communications and Automotive. It provides technology consulting, new product design, development, and testing services.