Multibagger Tata group stock rises further after better-than-expected Q4 results
Premium- Multibagger stock: In Tata Elxsi results, IT company has reported near 40 per cent jump in its YoY net profit
Multibagger stock: After following IT stock crash post-weak Infosys results, Tata Elxsi share price rebounded strongly ahead of its Q4FY22 results as market was expecting strong Tata Elxsi results on Wednesday. However, the Tata group IT company reported better-than-expected Q4 results, which triggered fresh buying in Tata Elxsi shares in early morning deals. After making a close at ₹7600 per share levels on NSE on Tuesday, Tata Elxsi share price today surged up to ₹8190 apiece levels, logging around 7.75 per cent in two straight sessions.
According to stock market experts, this rise in Tata Elxsi share price can be attributed to strong Tata Elxsi Q4 results, which is better-than-expected by Dalal Street observers. Experts said that after the weak Infosys results, IT stocks were under the selloff heat that include Tata Elxsi stock as well. Hence, when the Tata group It company reported better than estimated results, bulls are pumping money in the multibagger stock, which is available at a discounted price due to recent sell-of in IT stocks.
Speaking on the reason for Tata Elxsi share price rally; Ravi Singhal, Vice Chairman at GCL Securities said, "Tata Elxsi has reported better-than-expected Q4 results that is working as major trigger for the Tata group IT stock. Tata Elxsi has reported near 40 per cent jump in its YoY net profit. It has reported highest ever annual growth with full year operating revenue growth of more than 35 per cent, PAT (Profit After Tax) growing to the tune of around 49 per cent."
Echoing with Ravi Singhal's views; Santosh Meena, Head of Research, Swastika Investmart Ltd said, "The management commentary has been positive for the future and the company has won multiyear, multimillion deals in areas like cloud engineering, EV system development. Tata Elxsi has been selected by a leading German Tier 1 supplier for establishing an Offshore Development Center for Autonomous Driving and ADAS technologies and selected to establish & set up a Virtual Reality Innovation Center by a leading European commercial vehicle manufacturer. Due to the above-mentioned factors the shares are rising post Q4 FY22 results."
Santosh Meena went on to add that Tata Elxsi shares are one of the strongest IT counters as it is bouncing back from its strong demand zone of ₹7500 to ₹7700 apiece levels post-Infosys result fueled sell-off.
On reason for strong Tata Elxsi results; Rahul Sharma, Research Head, Equity 99 said, “Company's numbers were powered by superb growth in Embedded Product Design which grew 34.7% per cent (YoY)." He went on to add that company's board also recommended dividend of ₹42.50 per share adding, "We feel that the up-move in this counter will sill continue in coming days post its Q4 numbers."
Ravi Singhal of GCL Securities said, "Those who have Tata Elxsi shares in their portfolio can hold the counter further as the stock may go up to ₹9200 levels in 3 months. It is facing minor hurdle at ₹8400 to ₹8500 levels, which the current market mood is enough to breach. One can hold the counter maintaining stop loss at ₹7700 apiece levels."
Tata Elxsi shares are one of the multibagger stocks in 2021 as it has delivered around 160 per cent to its shareholders in last one year. In this period, the stock has surged from around ₹3,000 per share levels to ₹8000 apiece levels.
MINT PREMIUM See All
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.