On Monday, April 21, Tata Elxsi shares surged by 5% in the morning trading session, following the announcement of the company’s Q4 results last week. The tech firm also declared a generous dividend of ₹75 per share, reflecting its commitment to shareholders despite facing challenges in its core transportation segment.
Tata Elxsi’s Q4 Performance Insights
For the fourth quarter of FY25, Tata Elxsi’s net profit experienced a 13.4% decline, dropping to ₹172.4 crore from ₹199 crore in the previous quarter. This downturn is largely attributed to ongoing struggles within its primary transportation division, impacted by international trade tensions and geopolitical issues.
- Operating Revenue: The company reported revenue of ₹908.3 crore, a slight decrease from ₹939 crore in the previous quarter but comparable to ₹906 crore from the same period last year.
- EBITDA: Earnings before interest, tax, depreciation, and amortization (EBITDA) stood at ₹207.7 crore, leading to an EBITDA margin of 22.9%.
Dividend Announcement by Tata Elxsi
Tata Elxsi’s Board of Directors has proposed a final dividend of 750%, equivalent to ₹75 per equity share of a par value of ₹10, for the financial year ending March 31, 2025. This recommendation awaits approval during the upcoming Annual General Meeting.
Stock Price Movements and Future Outlook
Following a significant drop of 55% from its all-time highs and a 48% decline over the past 32 weeks, Tata Elxsi is showing signs of recovery, according to Anshul Jain, Head of Research at Lakshmishree Investment and Securities. He noted, “The stock is experiencing a potential rebound, characterized by a strong open-low setup with a 315% volume surge, indicating possible exhaustion in selling and opportunities for value buying.”
- Price Target: Jain emphasized that if the index maintains above 5000 on a closing basis, there could be a rally towards the resistance level of 5742, making it a key target for traders looking to capitalize on this bounce.
On Monday, Tata Elxsi shares opened at ₹4801 on the BSE and climbed to an intraday high of ₹5171.50, marking a gain of 5.5% from the previous day’s close of ₹4899.75. This upward trend reflects investor optimism in light of the recent financial disclosures and dividend announcement.
Stay tuned for more updates on Tata Elxsi and other market movements!
