Low Risk Investment Option - Tata Elxsi's shares extend rally, surge 15% in five sessions; Kotak sees 40% downside
With the sharp surge in the stock, Tata Elxsi's market capitalization also swelled to Rs 51,073 crore.
Tata Elxsi shares continue their steady upward march, scaling fresh highs to surge around 15 percent over the past five sessions. Shares of Tata Elxsi zoomed five percent in trade on August 30, riding on the back of heavy trading volumes in the counter.
At 10.45 am, shares of the technology company were trading at Rs 8,201 on the NSE. With the sharp surge in the stock, its market capitalization also swelled to Rs 51,073 crore.
As much as eight lakh shares of Tata Elxsi changed hands on the exchanges so far, a meteoric spike as compared to the one-month daily traded average of six lakh shares.
Commenting on the rally, Kotak Institutional Equities said, "Tata Elxsi's stock price increased 26 percent in the past two days. The stock was expensive even before the rally. We believe that Tata Elxsi's revenue growth would improve through the rest of FY2025E, as large OEM engagements ramp up.
Follow us at X-Intensify Research Services for daily market updates.
However, challenges in the rest of the portfolio persist: weak spending in the media and communications vertical and middling presence in healthcare, along with deferrals by large clients." Kotak retained its "sell" call on the firm, with an unchanged target price of Rs 5,500 per share, indicating a downside of around 40 percent.
Meanwhile, Saurabh Mukherjea-led Marcellus Investment Managers recently exited Tata Elxsi, which was a part of the firm's Rising Giants PMS portfolio. The fund house attributed the exit largely to expectations of better internal rate of return from new additions--Escorts Kubota, Coforge, and CMS Info Systems.
Try your fortune in the nifty buy-sell signals with the high accuracy of stock market tips by Intensify Research Services Private Limited, a leading financial advisory in India. Our daily/weekly report is based on the analysis done by the research team having years of expertise in Indian Share Market.