Download Unicorn Signals App

Powered By EquityPandit
MARKETS

Tata Elxsi Shares Slide After Q4 Revenue Misses, Margins Fall

Tata Elxsi shares fluctuate after Q4FY23 results.

Shares of Tata Elxsi fell 3.14% to Rs 6,781.85 in morning trade on May 19 after the technology services provider reported mixed results for the March quarter.

Tata Group Plc’s net profit rose 26% year-on-year to Rs 201.5 crore in the March quarter of FY23, despite lower operating margins, helped by lower tax costs. The company posted a profit of Rs 160.01 crore in the same period last year.

Operating income rose 23% to Rs 838 crore in Q4FY23, but missed analysts’ estimates of Rs 868 crore.

The company’s EBITDA margin fell to 29.8% from 32.5% a year earlier. The board has recommended a final dividend of Rs 60.60 per share for FY22-23.

Foreign brokerage Morgan Stanley has an “underweight” rating on the stock with a target price of Rs 5,610, a 17% drop from current levels.

Shares of Tata Elxsi fell 5% in the March quarter but have since soared more than 17%. The stock is up 9% so far in 2023.

The stock was trading at Rs 6,973.65 at 10:54 am on the National Stock Exchange, down 0.31% from the previous close.

Get Daily Prediction & Stocks Tips On Your Mobile