Tata Elxsi Shares Upgraded To 'Add' By HDFC Securities On Improving Growth Trajectory — Check New Target Price

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HDFC Securities Institutional Equities

With strong client relationships, differentiated capabilities, and strategic positioning across verticals, Tata Elxsi Ltd. is well-placed for sustained growth.

We have increased our revenue estimate by 1–2%, driven by improved growth visibility. However, margin recovery is expected to be gradual, leading to a 1–3% reduction in our EPS estimate.

We expect Tata Elxsi to deliver revenue/EPS CAGR of 10/12% over FY25-28E vs five year CAGR of 14/24%.

We upgrade Tata Elxsi to Add (earlier Reduce) with a revised P/E multiple to 35x (~32x earlier) and a target price of Rs 5,700, based on 35x Sep-27E EPS.

The stock is trading at a P/E of 36/31x FY27/28E (10 year average at 36 times).

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