NSEI:TATAELXSI

Stock Analysis Report

Executive Summary

Tata Elxsi Limited provides product design and engineering, and systems integration and support services in India, the United States, Europe, and internationally.

Rewards

Earnings are forecast to grow 13.5% per year

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Tata Elxsi's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TATAELXSI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.7%

TATAELXSI

-1.9%

IN Software

-2.9%

IN Market


1 Year Return

-17.4%

TATAELXSI

-27.9%

IN Software

2.8%

IN Market

Return vs Industry: TATAELXSI exceeded the Indian Software industry which returned -27.9% over the past year.

Return vs Market: TATAELXSI underperformed the Indian Market which returned 2.8% over the past year.


Shareholder returns

TATAELXSIIndustryMarket
7 Day-1.7%-1.9%-2.9%
30 Day5.0%-4.2%-1.4%
90 Day31.0%-5.2%6.2%
1 Year-16.1%-17.4%-24.4%-27.9%4.8%2.8%
3 Year20.2%16.4%-12.8%-19.8%31.3%24.4%
5 Year200.4%185.9%5.0%-10.9%42.7%29.9%

Price Volatility Vs. Market

How volatile is Tata Elxsi's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tata Elxsi undervalued compared to its fair value and its price relative to the market?

22.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TATAELXSI (₹848.05) is trading above our estimate of fair value (₹222.46)

Significantly Below Fair Value: TATAELXSI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TATAELXSI is poor value based on its PE Ratio (22.4x) compared to the Software industry average (11.4x).

PE vs Market: TATAELXSI is poor value based on its PE Ratio (22.4x) compared to the Indian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: TATAELXSI is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: TATAELXSI is overvalued based on its PB Ratio (5.7x) compared to the IN Software industry average (1x).


Next Steps

Future Growth

How is Tata Elxsi forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TATAELXSI's forecast earnings growth (13.5% per year) is above the savings rate (6.5%).

Earnings vs Market: TATAELXSI's earnings (13.5% per year) are forecast to grow slower than the Indian market (19.6% per year).

High Growth Earnings: TATAELXSI's earnings are forecast to grow, but not significantly.

Revenue vs Market: TATAELXSI's revenue (10.8% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: TATAELXSI's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TATAELXSI's Return on Equity is forecast to be high in 3 years time (22.6%)


Next Steps

Past Performance

How has Tata Elxsi performed over the past 5 years?

21.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TATAELXSI has high quality earnings.

Growing Profit Margin: TATAELXSI's current net profit margins (15.1%) are lower than last year (19%).


Past Earnings Growth Analysis

Earnings Trend: TATAELXSI's earnings have grown significantly by 21.6% per year over the past 5 years.

Accelerating Growth: TATAELXSI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TATAELXSI had negative earnings growth (-17.4%) over the past year, making it difficult to compare to the Software industry average (-4.2%).


Return on Equity

High ROE: TATAELXSI's Return on Equity (25.3%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tata Elxsi's financial position?


Financial Position Analysis

Short Term Liabilities: TATAELXSI's short term assets (₹10.0B) exceed its short term liabilities (₹1.7B).

Long Term Liabilities: TATAELXSI's short term assets (₹10.0B) exceed its long term liabilities (₹832.2M).


Debt to Equity History and Analysis

Debt Level: TATAELXSI is debt free.

Reducing Debt: TATAELXSI had no debt 5 years ago.

Debt Coverage: TATAELXSI has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TATAELXSI has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: TATAELXSI has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if TATAELXSI's debt is covered by short term assets.


Next Steps

Dividend

What is Tata Elxsi's current dividend yield, its reliability and sustainability?

1.59%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%0.6%markettop25%2.6%industryaverage2.1%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: TATAELXSI's dividend (1.59%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: TATAELXSI's dividend (1.59%) is low compared to the top 25% of dividend payers in the Indian market (2.56%).


Stability and Growth of Payments

Stable Dividend: TATAELXSI's dividend payments have been volatile in the past 10 years.

Growing Dividend: TATAELXSI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.6%), TATAELXSI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Tata Elxsi's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average management tenure


CEO

Manoj Raghavan (48yo)

0.2yrs

Tenure

0

Mr. Manoj Raghavan has been Managing Director, Chief Executive Officer and Director at Tata Elxsi Limited since October 2, 2019 and served as its Executive Vice President and Head of The Embedded Product D ...


Management Age and Tenure

5.2yrs

Average Tenure

55yo

Average Age

Experienced Management: TATAELXSI's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

3.6yrs

Average Tenure

65yo

Average Age

Experienced Board: TATAELXSI's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹1,230,00026 Aug 19
Manoj Raghavan
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares2,000
Max Price₹615.00
Sell₹22,214,02918 Feb 19
Tata Investment Corporation Limited
EntityCompany
Shares25,000
Max Price₹893.41

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • M. Thangarajan (55yo)

    Senior Vice President of Broadcast Business

    • Tenure: 0yrs
    • Compensation: ₹2.58m
  • Philip Mammen (58yo)

    Vice President of Human Resources

    • Tenure: 12.9yrs
    • Compensation: ₹2.55m
  • Anil Sondur (57yo)

    Executive Vice President

    • Tenure: 0yrs
    • Compensation: ₹2.49m
  • Vasant Shah (54yo)

    Global Head of Business Finance

    • Tenure: 7.9yrs
    • Compensation: ₹2.75m
  • Pai Nitin (48yo)

    Head of Marketing and Senior Vice President

    • Tenure: 0yrs
    • Compensation: ₹2.57m
  • Satyanarayan Prakash (55yo)

    Head of Telecom & Networking Business & VP

    • Tenure: 0yrs
    • Compensation: ₹2.48m
  • G. Vaidyanathan

    General Counsel

    • Tenure: 0yrs
    • Compensation: ₹8.34m
  • Nick Talbot

    Global Head of Design & Innovation

    • Tenure: 0yrs
  • H. Muralidharan

    Chief Financial Officer

    • Tenure: 2.4yrs
    • Compensation: ₹11.01m
  • Manoj Raghavan (48yo)

    MD, CEO & Director

    • Tenure: 0.2yrs

Board Members

  • NGS Subramaniam (60yo)

    Chairman

    • Tenure: 5.1yrs
    • Compensation: ₹105.00k
  • Madaboosi Ananth (74yo)

    Additional Independent & Non Executive Director

    • Tenure: 3.9yrs
    • Compensation: ₹7.07m
  • Shyamala Gopinath (70yo)

    Independent Non Executive Director

    • Tenure: 8.3yrs
    • Compensation: ₹11.84m
  • Ankur Verma (43yo)

    Additional Non Executive Non-Independent Director

    • Tenure: 1.3yrs
    • Compensation: ₹30.00k
  • Sudhakar Rao (71yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: ₹7.70m
  • Manoj Raghavan (48yo)

    MD, CEO & Director

    • Tenure: 0.2yrs

Company Information

Tata Elxsi Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tata Elxsi Limited
  • Ticker: TATAELXSI
  • Exchange: NSEI
  • Founded: 1989
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: ₹51.561b
  • Shares outstanding: 62.23m
  • Website: https://www.tataelxsi.com

Number of Employees


Location

  • Tata Elxsi Limited
  • ITPB Road
  • Whitefield
  • Bengaluru
  • Karnataka
  • 560048
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500408BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2000
TATAELXSINSEI (National Stock Exchange of India)YesEquity SharesININRFeb 2000

Biography

Tata Elxsi Limited provides product design and engineering, and systems integration and support services in India, the United States, Europe, and internationally. It operates through two segments, Software ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 12:47
End of Day Share Price2019/12/12 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.