Tata Elxsi Faces Share Price Drop After Q3FY24 Results

Tata Elxsi Faces Share Price Drop After Q3FY24 Results

VoM News Desk | January 24, 2024 | 02:32 PM IST | Breaking News | Follow on Google News

Tata Elxsi Faces Share Price Drop After Q3FY24 Results

Tata Elxsi Faces Share Price Drop After Q3FY24 Results

Tata Elxsi witnessed a nearly 5% decline in its share price during intra-day trading following the announcement of disappointing results for the quarter ending December (Q3FY24). The IT firm reported a 6% YoY increase in net profits, reaching ₹206.4 crore, and a marginal 3% sequential rise. Despite an 11% YoY growth in revenue to ₹914.2 crore, the stock experienced a dip.

Financial Highlights and Market Reaction

• Net profits rose 6% YoY to ₹206.4 crore in Q3FY24.
• Revenue from operations grew 11% YoY to ₹914.2 crore.
• EBITDA increased 2.4% QoQ to ₹270.1 crore, but the margin contracted to 29.5%.
• Stock fell as much as 4.7%, hitting a day’s low of ₹7,807.35.
• Despite the drop, the stock remains 33% higher than its 52-week low.

Analyst Recommendations and Outlook

• Choice Broking maintains an ‘add’ call with a target price of ₹8,890, indicating a 14% upside.
• Morgan Stanley maintains an ‘underweight’ recommendation, expressing dissatisfaction with earnings performance.
• Challenges in certain segments and a delay in recovery contribute to a reduced target price of ₹7,500, implying a 4% downside.

Tata Elxsi’s performance is scrutinized against expectations, with differing perspectives from analysts.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.