Tata Elxsi share price target 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about Tata Elxsi share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear for you, in this article we have mentioned Tata Elxsi share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals of the company.
Also read: Intelsoft share price target.
Tata Elxsi Company Profile
Tata Elxsi is amongst the world’s leading providers of design and technology services across industries including Automotive, Broadcast, Communications, Healthcare, and Transportation. Tata Elxsi is helping customers reimagine their products and services through design thinking and the application of digital technologies such as IoT (Internet of Things), Cloud, Mobility, Virtual Reality, and Artificial Intelligence.
Tata Elxsi commenced its business on 5th May 1989 in Bangalore, the Silicon Valley of India, to develop and promote applications of electronics, embedded systems, and software. The Mission was to foster innovation in the fast-emerging IT market and accelerate the adoption of leading-edge technologies. Today, Tata Elxsi is recognized as a premium engineering service provider worldwide and amongst the leaders in the automotive, media, broadcast, communications, and healthcare industries.
Tata Elxsi brings together the best technology and user-centric design expertise to help customers deliver innovative solutions and great consumer experiences. Tata Elxsi integrated Design and Technology teams help enterprises reimagine their products and services – from strategy, consumer research, and insights, to service and experience design, technology implementation, integration, launch, and beyond. This is supported by world-class product development processes and methodologies that have been evolved and matured over the last 30 years along with a global ecosystem of partners, design studios, that support access to the latest technology, tools and help drive faster time-to-market for its customers.
Share Holding Pattern
Tata Elxsi Share price Target 2022
Tata Elxsi reported operating revenues of 1826.2 crores in FY 2021, an increase of 13.4% year on year. This growth was mostly volume-led with constant currency growth of 8% YoY. Tata Elxsi’s operating profit (EBITDA) was 522.4 crores, up 52.3% year on year, with EBITDA margins of 28.6%, up 730 bps. Profit before tax was 511.9 crores, up 45.3% year on year and surpassing 500 crores for the first time in the Company’s history. The Company’s net profit for the year was ` 368.1 crore, up 43.7% year on year.
The onsite-offshore revenue mix has also shifted this year, with the offshore share rising by 920 bps to 66.9%. Operating margins have also improved as a result of this. Over the year, the Company hired a net of 785 new engineers and saw its attrition rate drop by 360 bps (6.6% for FY21). Tata Elxsi has been diligently working to reduce client concentration which is evident from FY21 results. The contribution of the top client in operating revenues has declined from 16.1% in FY 2020 to 11.8% in FY 2021.
The top 5 clients and top 10 clients in operating revenues have also reduced by 320 bps and 370 bps respectively in FY2021. Tata Elxsi’s geographical revenue contribution has also further diversified, with the US contributing to 36.8%, Europe 36.1%, and India 13.3%. By considering the performance, Tata Elxsi share price target for 2022 is Rs 7,040.
|Tata Elxsi share price target 2022|
Also read: ONGC share price target.
Tata Elxsi Share Price Target 2023
Tata Elxsi offers engineering services and solutions for connected, autonomous, and electric vehicles to help customers achieve their vision for future mobility. This encompasses the entire product development lifecycle, including product and design engineering, testing and validation, and vehicle program management.
Tata Elxsi is the preferred partner for leading OEMs and suppliers to develop electronics and software for powertrain, infotainment, connectivity, active safety, and comfort. TRANSPORTATION Tata Elxsi is investing in building capabilities in the rail industry, working with leading operators, metro and rail authorities, rolling stock, and systems suppliers to deliver design and technology services that enhance safety, convenience, quality, and overall customer experience while accelerating product and service development and deployment.
Tata Elxsi implements and integrates complete systems and solutions for specialized applications such as Experience Centers, Training and Safety, and Design Visualisation across industries such as automotive, aerospace, entertainment, manufacturing, government, and education. Professional services for Cloud and Infrastructure Management, Virtual Reality (VR), 3D Printing, and Robotics continue to strengthen our solution portfolio to meet evolving technology needs of our customers. By considering all the opportunities that these segments have to grow in the future, Tata Elxsi share price target for 2022 is Rs 7,540.
|Tata Elxsi share price target 2023|
Also read: Ashok Leyland share price target.
Tata Elxsi Share Price Target 2024
During the financial year 2021, the Software Development and Services business generated revenues of 1,781.6 crores, registering a growth of 14.1% year on year. The segment profit increased by 34.7% from 409.6 crores in the previous year to 551.8 crores in FY21. This segment witnessed healthy growth in FY 2020-21, supported by all key segments. The transportation business has been showing a sustained recovery while the media & communications business and healthcare business are growing at a steady pace.
Tata Elxsi efforts to diversify revenues by redeploying the available resources and capabilities into other adjacencies, i.e., off-road and rail, accelerating new customer acquisition, and diversification strategies to de-risk revenue dependency from customer/ segment/ region are yielding results. The software development and services segment consists of two business divisions; Embedded Product Design and Industrial Design & Visualization that provide technology and design services to customers across industries. This will have a positive impact on Tata Elxsi share price target.
The Embedded Product Design (EPD) division provides technology consulting, new product design, development, and testing services for Transportation, Media, Broadcast & Communication, and Healthcare. During the year 2020-21, this division generated revenues of 1611 crores, registering a growth of 14.8% Y-o-Y. In the latest Zinnov Zones 2020 Study, Tata Elxsi was ranked in the ‘Leadership Zone’ across multiple sectors. Tata Elxsi’s extensive and well-established ER&D services were recognized in the survey, and it was rated in the Leadership Zone in the Automotive and Media & Communications industries.
With three decades of experience in providing product design, technology development, testing, and systems integration services, Tata Elxsi has an unparalleled depth of industry expertise in each of these segments. According to the report, Tata Elxsi was also recognized as a well-established niche player in advanced technologies such as Digital Engineering, Artificial Intelligence, and the Internet of Things. Tata Elxsi share price target for 2024 is Rs 8,350.
|Tata Elxsi share price target 2024|
Also read: Union bank share price target.
Tata Elxsi Share Price Target 2025
Tata Elxsi is a preferred partner for leading car manufacturers, OEMs, and suppliers to develop electronics and software for powertrain, infotainment, connectivity, active safety, and comfort. Tata Elxsi provides R&D, design, and product engineering services to leading global automotive and transportation industry players. This business segment contributed to 41.2% of EPD revenues.
Consumer demand is driving the emergence, progress, and adoption of new trends and technologies in the global transportation sector. Market preferences are transitioning to 24/7 communication in this digital age. Connected devices are now supporting telematics, infotainment, navigation services, vehicle control, ADAS (Advanced Driver Assistance Systems), and autonomous driving, among other services, in the automotive world.
Digitally connected vehicles are incredible ways for brands and OEMs to understand their purchasers and their preferences better, nurture this relationship all through the possession lifecycle, and set out open doors for new income streams for themselves and the entire value chain through this association. Tata Elxsi plays at this specific intersection, taking knowledge and technology from various industries and blending it with award-winning design thinking and digital capabilities to generate value.
As per the Zinnov report, global automotive ER&D spending reached US$157 bn in 2019, registering a growth of 5% y-o y, led by investments in Digital Engineering fuelled by increasing focus on new-age technologies. Automotive OEMs and component manufacturers are growing their R&D expenditures on digital innovation initiatives to develop autonomous, ADAS, and industry 4.0 capabilities. Digital ER&D (US$ 133.5 bn) constitutes a significant part of global automotive ER&D spending.
Though the Automotive ER&D segment registered an 8% decline in spending in 2020, it is expected to reach US$ 157 bn by 2023. By considering all the above-mentioned factors, Tata Elxsi share price target for 2025 is Rs 9,700.
|Tata Elxsi share price target for 2025|
Also read: Delta Corp share price target.
Tata Elxsi Share Price Target 2030
During FY2020-21, Tata Elxsi announced the opening of the Global Engineering Center (GEC) with Schaeffler Technologies AG & Co. KG, a world leader in providing mechatronics solutions for the Transportation industry. Tata Elxsi is the global engineering services partner for Schaeffler, and the GEC is part of a strategic multi-year engineering services engagement. This relationship strengthens your Company’s automotive presence in Europe and reinforces the strategic investments as a design-led engineering solutions provider over the years.
Tata Elxsi is investing in strengthening electric vehicles’ development capabilities, including control software development, battery management systems, and validation. We continue to invest in developing IP in select areas, creating new monetization opportunities, and demonstrating expertise in specific areas of future growth.
Tata Elxsi addresses the complete product development lifecycle from R&D, new product development, and testing to maintenance engineering for Broadcast, Consumer Electronics, and Communications. Your Company works with leading broadcasters & operators to develop and deliver new connected services and superior customer experience. The Media, Broadcast, and Communications division contributes 44.7% of EPD revenues.
As per Zinnov’s report, global hi-tech-led verticals consisting of software & internet, semiconductor, and telecom are expected to reach the US $484 Billion by 2023, registering a CAGR of 14%, 2019-2023. by considering all these factors and after extensive research, Tata Elxsi share price target for 2030 is Rs 17,400.
|Tata Elxsi share price target 2030|
Also read: Eicher motors share price target.
Tata Elxsi Share Price Target 2022, 2023, 2024, 2025, and 2030
|Year||Share Price Target|
|Tata Elxsi share price target 2022||Rs 7,040|
|Tata Elxsi share price target 2023||Rs 7,540|
|Tata Elxsi share price target 2024||Rs 8,350|
|Tata Elxsi share price target 2025||Rs 9,700|
|Tata Elxsi share price target 2030||Rs 17,400|
Frequently Asked Questions
What is the target of Tata Elxsi?
Tata Elxsi share price target for 2022 is Rs 7,040, Tata Elxsi share price target for 2023 is Rs 7,540, Tata Elxsi share price target for 2024 is Rs 8,350, Tata Elxsi share price target for 2025 is Rs 9,700, and Tata Elxsi share price target for 2030 is Rs 17,400.
Is Tata Elxsi a good investment company?
Yes, Tata Elxsi is a good investment company. Tata Elxsi is very strong in terms of financials and fundamentals. The company is virtually debt-free, the company has a good ROE track record of 29% and a healthy operating margin of 28%.