After posting stellar Q1 earnings, this multibagger stock is rising sharply on July 15

resr 5paisa Research Team

Last Updated: 7th September 2023 - 05:09 pm

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The company's net profit increased by an astounding 62.92%.

Shares of this Tata Group stock have given investors exponential returns during the past two years, rising from Rs 892 on July 15, 2020, to Rs 8069 on July 15, 2022. Tata Elxsi is the stock we are talking about.

At 2:32 pm on July 15, Tata Elxsi Ltd shares are trading at Rs 8069, up 3.48% on the day. The stock is gaining traction after the company reported strong first-quarter results on Thursday. The company has a market capitalisation of Rs 50,118 crore and is a part of S&P BSE group "A."

The company posted Q1 sales of Rs 726 crore, an increase of 30% year over year and 6.45% quarter over quarter. The first quarter's net profit significantly increased year over year, by 62.92%, to Rs 184.72 from Rs 113.38 crore in the first quarter of the previous fiscal.

The company's historical 10-year sales and net profit growth of 17% and 32%, respectively, also look promising.

A multi-national provider of design and technology services, Tata Elxsi creates hardware and software for customers in a range of industries, including automobile, broadcasting, healthcare, and telecommunications. The company operates in three business segments- Embedded product & design, Industrial Design & Visualization, and System Integration & Support.

Majority of the company’s revenue, about 88%, comes from the Embedded product and design segment. While Design and Visualization and System Integration and Support segments contribute 9% and 2% to the revenue figure.

The profitability ratios, ROE and ROCE, for the company stood at 37.2% and 47.7%, respectively, as per the FY22 period ending. The shares of Tata Elxsi are trading at a PE of 86x.

In terms of ownership of the company, the promoters own 43.92%, FIIs & DIIs own 19.38%, and the remaining 36.71% portion is owned by non-institutional shareholders.

Today, on July 15, the shares of Tata Elxsi opened at Rs 7940. The stock’s intraday low and high so far have been Rs 7870 and Rs 8119, respectively.

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