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.