After Q4 earnings, Tata Elxsi shares fell 5%, and brokerages lowered their target price

Tata Elxsi’s Q4 earnings, share price, and target share price: On Wednesday, April 24, Tata Elxsi shares fell after the company’s Tuesday announcement of a 2.2% decrease in net profit, to Rs 196.93 crore, for the fourth quarter that concluded in March. Tata Elxsi is a supplier of design-led technology services.

Early morning trade on the NSE saw Tata group shares drop as much as 5.34 percent, reaching the day’s low of Rs 7,000. Reiterating the downward trajectory for the fifth session, the counter was down 3.6% at Rs 7,128.8 at 9:40 AM.

According to a regulatory filing by Tata Elxsi, the business reported a net profit of Rs 201.51 crore during the same time in the previous fiscal year.

It also said that revenue from operations for the quarter under review was Rs 905.94 crore, up from Rs 837.91 crore for the same time last year. According to the corporation, its overall costs increased from Rs 613.39 crore to Rs 677.21 crore in the previous year. See more about the Tata Elxsi Q4 earnings.

Dividend for Tata Elxsi
For the fiscal year that ends on March 31, 2024, the board of Tata Elxsi has proposed a final dividend of Rs 70 per equity share with a par value of Rs 10 each. This payment is subject to approval by the company’s shareholders at the annual general meeting. Go deeper on the Tata Elxsi dividend.

Outlook for Management
“Financial year 2024 has been a year of consistent operational performance with a revenue growth of 13 per cent despite global macroeconomic uncertainties, and volatility in the media and communications industry over the last few quarters,” Manoj Raghavan, Tata Elxsi CEO and

Regarding the forecast, he said, “We are entering the new financial year with a commitment for growth, and continued confidence in our differentiated design-led engineering capabilities.”

Target share price for Tata Elxsi
Regarding Tata Elxsi, Morgan Stanley continues to maintain an underweight call. The brokerage has cut the goal from Rs 7,300 to Rs 6,860.

The global brokerage claims that although Q4 was underwhelming, management gave encouraging feedback on revenue growth in FY25. The firm said in its report that, given the weight of steeper valuations and bigger expectations, good comments would not be sufficient.

For FY25 and FY26, the firm has reduced its profits per share (EPS) by 3.9% and 5.4%, respectively.

JP Morgan has also maintained an underweight call, lowering its goal from Rs 6,000 to Rs 5,800.