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Tata Elxsi Ltd. Stock Analysis

Mid Cap
Evaluated by 3953 users | BSE: 500408 | NSE: TATAELXSI |
IT - Software
Tata Elxsi was incorporated in 1989; provides system integration and software development. The company caters to various industries such as aerospace, consumer electronics, entertainment, FMCG, telecom etc. It is part of US$ 69 billion Tata Group.It provides hard core technology and strength...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Tata Elxsi Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 15.17%15.6%14.56%28.88%41.61%46.15%40.69%35.56%34.28%24.09%
Value Creation Index 0.380.420.321.632.783.202.702.192.121.19
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 4115146057728491,0751,2371,3861,5971,610
Y-o-Y Gr. Rt.-25.2%17.5%27.7%10%26.6%15.1%12%15.2%0.8%
Adjusted EPS (Rs.) 4.785.065.0310.9617.2424.7230.7436.9146.1539.67
Y-o-Y Gr. Rt.-5.9%-0.6%117.9%57.3%43.4%24.4%20.1%25%-14%
Book Value per Share (Rs.) 28.9830.3630.8137.7145.561.9389.55118.56151.38175.03
Adjusted Net Profit 29.831.531.368.3107154191230287247
Net Op. Cash Flow (Rs. Cr.) 71.756.236.9126143121144197215256
Debt to Cash Flow from Ops 0.350.611.590000000.23
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Tata Elxsi Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 16.4%13.6%9.2%0.8%
Adjusted EPS 26.5%18.1%8.9%-14%
Book Value per Share 22.130.92515.6
Share Price 36.4% 12.3% 24.6% 118.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 16.817.0516.443241.4446.0240.5835.4834.224.31
Operating Profit Margin (%) 11.3810.8611.5314.5820.8723.0424.0325.0226.0521.38
Net Profit Margin (%) 7.246.135.188.8412.6414.3215.4716.581815.35
Debt to Equity 0.140.180.310000000.05
Working Capital Days 158132124116135146127106111123
Cash Conversion Cycle 63464636313144576171
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 44.53%
Institutions 16.37%
Non-Institutions 39.10%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Tata Elxsi Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Tata Elxsi Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Tata Elxsi Ltd.'s performance infers:

Tata Elxsi Ltd. earnings have grown by 18.1%, whereas share price has appreciated 12.3% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Tata Elxsi Ltd. share prices over the last 10 years. Here is what we found out:

Tata Elxsi Ltd. share price has appreciated 28.1% annually over the past ten years.

Tata Elxsi was incorporated in 1989; provides system integration and software development. The company caters to various industries such as aerospace, consumer electronics, entertainment, FMCG, telecom etc. It is part of US$ 69 billion Tata Group.

It provides hard core technology and strength in design. The company offers end-to end solution across the product lifecycle.

Business Division

Product Design Services- The Company is engaged in product research and development

Tata Elxsi was incorporated in 1989; provides system integration and software development. The company caters to various industries such as aerospace, consumer electronics, entertainment, FMCG, telecom etc. It is part of US$ 69 billion Tata Group.

It provides hard core technology and strength in design. The company offers end-to end solution across the product lifecycle.

Business Division

Product Design Services- The Company is engaged in product research and development outsourcing business since 1989. Under this it caters to clientele like ARM, Broadcom, Canon, Epson, Hella, Motorola, Pace Micro Technology, Philips, Samsung and TI.

Industrial Design Division- Being the largest design house in India, designs products that support in creation of brand. According to client requirement it conceptualises products. Under this the company has catered wide range of clients like Whirlpool, UB group, HUL, P&G, Cadbury, ITC and many more. It has created products like Junior Horlicks, HUL’s Pureit, Pond’s Talc, Nyle Shampoo, etc.

Visual Computing Labs- The Company develops 3D and 2D animation, visual effects and gaming services. This division offers services in Pre-production, Production, Animation, post production for advertising, films, TV and Gaming. It has part of various Hollywood and Bollyood project like Spiderman-3, Taare Zameen Par, Jodhaa Akbar, etc.

System Integration Services- It caters to enterprise and high performance computing market with a wide range of hardware, networking products and storage solution.

Awards

Tata Elxsi won Award for ‘Best Special Effects’ for the film Anniyan at the 53rd National Film Awards.

Company’s Visual Computing Labs also won nominations at Arena Animation CNBC - TV 18 Golden Cursor Animation Awards.

Outlook

Tata Elxsi has signed a Memorandum of Understanding (MoU) with Open Engineering, the research and development subsidiary of the Belgium headquartered Samtech Group, Europe’s leading provider of Computer Aided Engineering (CAE) software. As per MoU the company will partner Open Engineering in India for the distribution and support of OOFELIE®, a multi-physics numerical simulation professional software dedicated to provide an open powerful but easy to use CAD CAE all-in-one solution for industrial engineering departments and research centers.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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