Rs 70/Share Dividend: Tata IT Stock Declares 2 Big Updates, Should You Buy Or Sell?

Large cap Tata Group company operating in IT Software sector, Tata Elxsi share witnessed 0.80% decline in trade today despite 3 new updates. Last trading price of Tata Elxsi Ltd share on BSE is Rs 7047.75 per share. Tata Elxsi has a market capitalisation of Rs 43,890.88 crore. Tata Elxsi plunged 19% year-to-date and gained over 6% in last 1-year. It is worth mentioning that Life Insurance Corporation of India (LIC) has 1.97% stake in Tata Elxsi as the insurer holds 1,226,008 shares of the company. More details below:

Tata Power Community Development Trust (TPCDT) Partners With Tata Elxsi: According to the BSE filing of the company dated April 29, 2024, "Tata Power Community Development Trust (TPCDT) has partnered with Tata Elxsi to drive their "Pay Autention" initiative forward. Leveraging Tata Elxsi's innovative digital therapeutics (DTx) solution, TEcare, TPCDT seeks to accelerate the development of the India Neurodiversity Platform." TEcare, developed by Tata Elxsi, serves as a foundational platform for hosting and integrating various disease-specific DTx modules.

This phygital platform is the result of a collaborative effort between Tata Power Community Development Trust (TPCDT) and the National Institute for the Empowerment of Persons with Intellectual Disabilities (NIEPID) and is aimed at supporting individuals with neurodiversity issues, particularly children with screening individuals with special needs, added the BSE filing.

Tata Elxsi Announces Two Big Wins at iF DESIGN AWARD 2024: The exchange filing dated April 30 stated, "Tata Elxsi has won two iF DESIGN AWARDs in User Experience Design for its Sports and Entertainment OTT Experience solution and Product Design for the "Aha!" Tea Vending Machine for Chaayos. The competition was intense: over 11,000 entries were submitted from 72 countries. A jury of 132 independent design experts from all over the world handpicked the final winner."
Tata Elxsi developed the "Aha!" tea vending machine for Chaayos to bring authentic chai experiences to workplaces and academic institutions.

Shyam Sunder B K, Chief Designer, Tata Elxsi said, "Designing products that foster a strong affinity with users and embed sustainability has become essential. At Tata Elxsi, this approach allows our design teams to consistently deliver solutions that not only meet but exceed our clients' expectations. We are delighted that some of our work has been recognised at the prestigious iF Design Award 2024."

Tata Elxsi Announced Highest Ever Dividend: According to the exchange filing of Tata Elxsi dated April 23, 2024, "Board of Directors has recommended a dividend of 700% at Rs. 70/-, per equity share of Rs. 10 each, for the financial year 2023-24, subject to tax, which shall be paid/dispatched on or after the seventh day from the conclusion of the 35 th Annual General Meeting, subject to the approval of the shareholders of the Company."

Tata Elxsi Quarterly Performance: Tata Elxsi announced a fall of 4.6% quarter-on-quarter (QoQ) in net profit for the March quarter to Rs 196.93 crore as compared to Rs 206.4 crore reported in the Oct-December quarter of FY2024. Its bottomline stayed 2.32% lower than Rs 201.5 crore declared an year ago. The IT giant's revenue from operations fell 1% for Q4 of FY2024 TO Rs 905.9 crore as compared to Rs 914.23 crore declared in the preceding quarter, but remained higher than Rs 837.91 crore announced an year ago. EBIT margin witnessed growth to 25.8% for the quarter under review as against 26.8% in the last quarter amid operational efficiencies.

Tata Elxsi Share Performance: The 52-week high price of the stock is Rs 9191.10 apiece (as on 18/12/2023) and 52-week low price is Rs 6,559.00 apiece (3/05/2023), respectively. Tata Elxsi has a PE of 55.40 and EPS (TTM) of 127.21. Tata Elxsi shares fell over 4% in last 1-week, declined 9% in last 1-month, and offered return of 102% in last 3-years. In last 5-years, Tata Elxsi offered attractive returns of 657% and jumped 2462% in last 10-years.

Tata Elxsi Bonus Share: The company announced so far only 1 bonus issue since September 18, 2017. It was declared in the proportion of 1:1 with ex-bonus date set as September 18, 2017.

Brokerages Opinion on Tata Elxsi Share: HDFC Securities has maintained sell call on Tata Elxsi shares with target price of Rs 6435 per share. Leading brokerage house Morgan Stanley slashed Tata Elxsi's Earnings per Share (EPS) estimates by 3.9% and 5.4% for FY 2025 and 2026 and issued underweight rating to Tata Elxsi shares. JPMorgan reduced target price on Tata Elxsi to Rs 5,800 from Rs 6,000 earlier, as it also issued underweight rating.

Meanwhile, Out of 10 analysts who have been tracking the stock, 6 assigned sell rating while the remaining gave buy call to Tata Elxsi shares.

About: Tata Elxsi is a fully integrated global design and technology consultancy, creating innovative products, services and experiences to build brands and help businesses grow. It has a multi-disciplinary team of over 13,000 design researchers, strategists, product, UX / UI designers, technologists, and engineers.

Disclaimer: The stock has been recommended by leading brokerage firm HDFC Securities, Morgan Stanley, and JPMorgan. Goodreturns, the Author, and ICICI Securities will not be held responsible for any losses due to decisions taken based on the article. Goodreturns.in recommends readers to verify with certified experts before taking any investment decision.