8

Research
Project 2023

JANUARY 22

TATA Elxsi Ltd.

Authored by: Sahil Sharma

1
 TATA Elxsi Limited

General Overview of the Company:

Tata Elxsi is a global design and technology services company that is part of the Tata Group, a
conglomerate based in India. The company provides services in product engineering, industrial
design, systems integration, and R&D consulting to clients in various industries, including
automotive, consumer electronics, healthcare, and telecommunications. Tata Elxsi has a wide
range of services span the product development life cycle, from concept to design,
engineering, and manufacturing. The company is headquartered in Bangalore, India, and has
offices worldwide. It was founded in 1989 and is known for its innovation and design expertise
in the fields of broadcasting, semiconductors, transportation, and healthcare.

 Ticker Symbol: TATAELXSI

 Exchange: NSE & BSE
 Share Price: ₹6378
 Market Cap: ₹39721 Cr
 Founded: 1998
 CEO: Manoj Raghavan
 52 weeks high: ₹10760
 52 weeks low: ₹5340

One of the key areas of focus for Tata Elxsi is AI and Machine Learning (ML) services. The
company has a dedicated team of experts who specialize in providing AI and ML-based
solutions to clients across various industries. Tata Elxsi's AI and ML services include services
such as computer vision, natural language processing, predictive analytics, and deep learning.
The company's AI and ML services are used by clients in industries such as automotive,
healthcare, retail, and manufacturing.

In the field of automotive, Tata Elxsi provides services such as ADAS, infotainment and
powertrain control systems using AI and ML. In the healthcare sector, the company offers
services such as medical imaging analysis, patient monitoring, and drug discovery using AI and
ML. The company also provides AI and ML-based solutions to clients in the retail industry, such
as inventory management, demand forecasting, and price optimization.

2
 Share Holding Pattern:

Shareholding pattern Summary:

 Promoters:43.92%
- TATA Sons Pvt. Ltd:42.22%

 Public holdings: 38.75%

 FII: 13.89%
 DII: 3.43%
 Others:0.01%

It means that the majority of shares of Tata Elxsi are held by Promoters (Tata Sons Limited) and
Foreign Portfolio Investors, followed by Non-Institutional Investors and Retail Investors.

Management of the Company:

NAME DESIGNATION
N. Ganapathy Chairman (Non-Executive and Non-Independent), Since Nov 2014.
Subramaniam
Manoj Raghavan CEO, Managing Director

Mr. Sudhakar Rao Independent Non-Executive Director

Dr. Anurag Kumar Independent Non-Executive Director

Mr. Ankur Verma Non- Executive Director and Non-Independent

Gaurav Bajaj CFO( Chief financial officer)

Nitin Pai CMO and Chief strategy officer

Raja Gopalan CTO (Communication Tech. and Platform)

Rajappa

3
 Mr. N. Ganapathy Subramaniam is the Chairman (Non-
Executive and Non-Independent) of Tata Elxsi Limited since
November 2014.

He is also the Chief Operating Officer (COO) of TCS since

February 2017. Prior to taking over the COO’s role he served
as the Executive Vice President and Head of TCS Financial
Solutions, a strategic business unit of TCS.

Mr. Subramaniam brings in-depth knowledge about technology trends, systems, and
policies of leading global corporations, and international business.

He actively participates in banking, technology, and business forums in addition to specific

knowledge streams in risk management and Six Sigma orientation.

Strengths, Weaknesses, Opportunities & Threats (SWOT) analysis of the

Happiest Minds:

 Strengths:



Strong brand reputation and customer base
Diversified portfolio of services and industries S W
 Strong R&D capabilities
 Strong partnerships and collaborations
 Company with high TTM EPS Growth(413.9% return for Nifty


500 over 5.4 years).
Increasing Revenue every Quarter for the past 8 Quarters
O T
(77.1% return for Nifty 500 over 4.5 years)
 Company with no debt.
 Strong cash generating ability from core business and improving cash flow from
operation for last 2 years.

4
  Weaknesses:

 Dependence on a few key clients

 Limited geographical presence in certain regions
 Limited presence in some service areas
 Stock with Medium to Low Trendline Momentum Score.
 MFs decreasing their shareholding last quarter.
 Stock in the sell zone based on days traded at current PE AND P/BV.

 Opportunities:

 Growing demand for design and technology services in various industries

 Potential for expansion in emerging markets
 Potential for growth in new service areas
 Potential for acquisitions and partnerships

 Threats:

 Intense competition in the industry

 Economic downturns and market volatility
 Technological advancements and disruption
 Regulatory changes and compliance requirements

How Company can proceed with its Strengths:

Overall, Tata Elxsi has a strong reputation and diverse portfolio of services, but it also faces
competition and a dependence on a few key clients. The company can capitalize on growing
demand for design and technology services, and expand in emerging markets and new service
areas. However, it must also be aware of the potential impact of economic downturns and
regulatory changes.

5
 Competitive Analysis:

1. Wipro Limited: Wipro is a global information technology, consulting, and

business process services company with a strong presence in the product
engineering and system integration space.

2. HCL Technologies: HCL Technologies is a global IT services company that

provides product engineering, system integration, and other services in various
industries.

3. Infosys: Infosys is a global technology service and consulting company that

provides product engineering, system integration, and other services to clients in
various industries.

4. Tech Mahindra: Tech Mahindra is a global provider of digital transformation,

consulting, and business reengineering services, with a strong focus on the
telecommunications and technology industries.

5. L&T Technology Services: L&T Technology Services is a global provider of

engineering and research and development (R&D) services, with a strong focus
on the automotive, aerospace, and industrial segments.

6. Mindtree: Mindtree is a global technology service and digital transformation

company that provides product engineering, system integration, and other
services to clients in various industries.

6
 Conclusion and Way Forward for the Company

 Key Financial Ratios :

7
  Way Forward for the Company

The way forward for Tata Elxsi will likely involve a focus on expanding its services and
capabilities in areas such as digital transformation, Industry 4.0, and emerging
technologies such as artificial intelligence, machine learning, and the Internet of Things
(IoT).

The company can also look to expand its presence in international markets and explore
partnerships and collaborations with other companies in order to gain access to new
technologies and customers.

Another important aspect for the company is to focus on its existing clients and
maintain a strong relationship with them, as well as to pursue new clients and business
opportunities.

In addition, Tata Elxsi can also explore new service areas like Automotive, Aerospace,
Consumer Electronics, Medical Devices, Smart Energy, and Smart Mobility to increase its
revenue streams.

In the current scenario, with the world facing a pandemic, the company can also focus
on providing services in the Healthcare and Pharmaceutical sectors, as they are expected
to have a higher demand due to the pandemic.

Overall, the company has a good reputation in the market and a strong parent
company, so it has a solid foundation to build upon. With a clear focus on its goals and
a strong strategy, Tata Elxsi can continue to grow and expand its services in the future.