Accumulate Tata Elxsi; target of Rs 3790: Prabhudas Lilladher
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Prabhudas Lilladher issued an accumulate rating for Tata Elxsi with a target price of Rs 3790.
- ✓The company delivered better than expected Q2 performance with revenue growth of 2.3% QoQ.
- ✓EBIT margins expanded 70 bps to 19.7%.
Story at a Glance
- Category
- BUSINESS
- Reported By
- MoneyControl
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
Prabhudas Lilladher's research report on Tata Elxsi TELX delivered better than expected Q2 performance, with rev. growth of 2.3% QoQ CC, ahead of our estimate of 1.2%, while EBIT margin expanded 70 bps QoQ to 19.7%, exceeded our est. of 18.5%. Revenue growth was broad-based across verticals, led by HLS (+3.5% QoQ CC) and M&C (+3.4% QoQ CC), while Transportation grew +2.0% QoQ CC, aided by deal ramp ups and healthy demand for US auto OEMs. The underperformance in Transportation growth was attributed to weakness in European automotive and slower deal closures in the region, which is partly offset by strong traction in the US and India regions.
Management remains optimistic about sustaining Transportation growth momentum in H2, aided by multi-year large deal win from an auto OEM, lower revenue leakages than that of last year and opportunities around adjacencies (Aero & Defense).
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