TATA ELXSI

STOCK PITCH PRESENTATION

-AKASH GEDAM
 Indian company formed in 1989 and part of TATA
group.

Provides product engineering and technology

services.
COMPANY
OVERVIEW
Has its headquarter in bangalore

Sectors involved in : Automotive,Aerospace,

Broadcast, Communications, Consumer Products,
Healthcare, Marine, Rail, Semiconductor
 CURRENT STOCK PRICE AND TARGET

• Current stock price is 922.20 (2nd July

Closing price)
• Market Cap : 5734 Cr.
• 52 week Low/High: 822.20---1491.75
(After correction in the market is
available at a very low price)
• Deliverables : varies 25%-30%
• Target : 1210 (Strong Buy)
• People are either holding or buying at
current position.

Source : Money Control

FINANCIAL ANALYSIS
 FINANCIAL ANALYSIS

• 14th in industry position as per market

capitalization with TCS(another part of TATA)
on TOP.
• TCS for big projects and TATA ELXSI for small
projects.
• ROCE → 30.76
• P/E→ 19.29 which is far lower than industry
P/E. (The reason is recent fall due to
correction in market)
• No Debt as Liability

Source : Money Control

 FINANCIAL ANALYSIS

• The stock price has been consistent.

• Drops represent demonetization and
GST implementation which hit the
economy.
• Drop from 1400 to 850 is the correction
of market which is actually giving
opportunity to buy.
• Dividend yield is 1.14 % i.e. Rs. 11 per
share.

Source : Money Control

 Chart Title
1800

1600

1400

FINANCIAL 1200

ANALYSIS 1000

800
Consistency in growth is clearly visible.
600

400
Quarterly increase is also consistent for
financial year 2018-19. 200

0
2015-16 2016-17 2017-18 2018-19
Income PBEIAT PAT

Source : Money Control

 Assumed that the growth in AI and product
engineering will continue with the technology and AI
is the future.
TCS big brother of the TATA Elxsi is surely going to
transfer projects of product engineering to Elxsi and
the network of TCS will definitely help TATA Elxsi.

INVESTMENT The cost of stock currently is cheap as we can see

through financial factors comparing with the firms of
THESIS other firms.
Valuation is attractive and financial trend is positive
and is suitable for long term investment.

Few companies like Mindtree are the true competitors

with enough resources and backup from L&T.
“
THANK YOU