By Admin 
Tata Elxsi Ltd Share Crash: Investors often look for multibagger stocks in the stock market. That is, such stocks which have the power to double the investors’ money. These are hidden gems because due to their small size and low cost, people often do not pay attention to them. Tata Elxsi has also been one such stock, which has been successful in providing good returns to its investors. But as the days passed, this stock also became vulnerable to the uncertainties of the stock market.
Shares fell drastically in two years
There has been a huge decline in the shares of Tata Elxsi Limited in the last two years. During this period it has declined by 37 percent. Whereas this same stock has given multibagger returns of 121 percent and 484 percent respectively in the last five and ten years. In Wednesday’s session, Tata Elxsi shares fell 5 percent to Rs 5,501.90 compared to its previous closing price of Rs 5,796.15. With this, the market cap of the company fell to Rs 34,274 crore. During this period, a total of 0.63 lakh shares of the company were transacted, whose turnover was Rs 35.57 crore.
Would it be right to bet or not?
According to the brokerage, despite the correction in IT stocks, the valuation is still high. According to Elara Capital, valuations seem complete as the stock is trading at 45x/38x FY27E/FY28E. It maintains ‘Sell’ call with a higher price target of Rs 4,520 on 30x FY28E P/E. The brokerage said that the company has given better than expected Q3 results on revenue and margin front.
Elara said, “We believe that double-digit growth can be achieved in transportation given some recent deal wins as well as growth acceleration for its top clients. However, given its continued weak performance, double-digit growth in healthcare looks challenging in our view.”
MOFSL has given a price target of Rs 4,700 on the stock. The brokerage has maintained its ‘Sell’ rating on the IT stock.
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Make your purchase quickly! This company is giving an opportunity to earn huge dividend, getting a profit of Rs 57 for 1 share.