Only Tata Group Mid Cap IT Stock With Positive YTD Returns: Check Details

Tata Group stocks are of interest for the masses and likewise this mid-cap IT stock from the Tata group also needs attention. This is because this is the sole counter from the pack to have earned YTD positive returns to the tune of 42%. If you could guess it, Yes we are talking about Tata Elxsi.

About the company

Tata Elxsi as per the company's website is amongst the world's leading providers of design and technology services across industries including Automotive, Broadcast, Communications, Healthcare, and Transportation. Tata Elxsi is helping customers reimagine their products and services through design thinking and the application of digital technologies such as IoT (Internet of Things), Cloud, Mobility, Virtual Reality, and Artificial Intelligence.

Stock price trajectory

The company in a span of 1 year has moved from a price of Rs. 1468 as its 52-week low to a 52-week high price of Rs. 9420. So, offering an exorbitant return of 9 times almost. The company's all time low price has however been Rs. 14.55.

Fundamentals and financials:

The stock is currently richly valued with zero debt on its books. ROE has been an excellent over 34%, In the March ended quarter, FPIs have raised stake in the counter. In the March ended quarter, the company's revenue as well as net profit has inched higher with the latter coming in at Rs. 160.01 crore. Over the last 5 years, revenue has grown at a yearly rate of 11.41%, vs industry avg of 8.4% Over the last 5 years, net income has grown at a yearly rate of 18.92%, vs industry avg of 14.9%. Free cash flow as with the company as in Fy 21 is at a higher side of Rs. 398.56 crore.

Future stock price trajectory as worked out

The stock has been rallying after its results and then later because of its inclusion in the MSCI index. Earlier, Sharekhan has raised bet on the stock for a target price of Rs. 9000, while analysts see it making climb to Rs. 12,000 levels.