Buy Tata Elxsi: target of Rs 2315: Sharekhan
Sharekhan is bullish on Tata Elxsi has recommended buy rating on the stock with a target price of Rs 2315 in its research report dated January 05, 2021.
January 14, 2021 / 08:54 PM IST
Sharekhan's research report on Tata Elxsi
Enterprises’ digital engineering spends to clock a 19% CAGR in 2019-2025E, which is expected to create strong growth prospects for TEL given its strong footprint across key markets and excellent operational management. Amid better demand and lower-than-expected furloughs, management remains optimistic on delivering strong growth in H2FY2021, which would be better than H1FY2021 but in line with H2FY2020. With a demand recovery in auto segment and strong traction in other verticals, we expect TEL’s revenue growth to pick up faster than expected in the next few years and boost margins. We expect TEL’s revenue/earnings to clock 21/24% CAGR over FY2021-FY2023E.
We stick to our Buy rating on Tata Elxsi Limited (TEL) with a revised PT of Rs. 2,315 given material improvement in demand environment in certain segments of ERD space and strong traction for offerings across verticals.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.