Objective: ₹ 4,250
CMP: ₹ 5,344.45
Tata Elxsi has reported a silenced Q4Fy25 impression with income contraction or 5.3 percent QOQ CC, approximately in line with our estimate (or -5.9 percent) and fall below the consensus. The vertical transport recession was clear, already integrated in the I-SEC estimate.
Income growth for fiscal year 2015 stood at 3.1 percent estimation of CC vs IC or 2.7 percent. The Ebit margin of the full year was 23.3 percent against estimated 24.4 percent. Transport/Media and Communication Health and Life Sciences, other verticals grew +11.8/-5.5/-. 9.4/23.3 percent cc yoy (USA +20.4/-2.6/ +2.9 percent cc in FY24), respectively.
Other outstanding aspects of the fourth quarter include: 3 large offers signed with a component of greater annuity, a turn to emerging geographies and the company that highlights the growth in Q1Fy26. Although the new agreements give a short -term respite, structural and macroconomic problems are large. We greatly maintain our estimates and adjust the FY26E EPS in 130 bp in a slightly better borrowed short -term visibility by large agreements and optimism in health -led demand. Reduce the reduction (of the sale, in the correction of recent shares or 7 percent in the last month) established in a forward PE or 30X without changes of 1 year.
Key risks: Faster ramps of existing and new victories of great offers and the regulatory changes that lead to lifting the uprising to demand the excess of American geography.
Posted on April 21, 2025
